sustainability report with social awareness · 194,835 hp our network covers 17 colombian...

2019

Sustainability Report With Social Awareness

Bucaramanga

CupiaguaBogotá

Neiva

Armenia

Cali

Medellín

La GuajiraWe are members of GEB

Our capabilities

Organizational profileAt TGI we create and provide midstream hydrocarbons solutions to large users, producers and developers of energy markets, connecting the sourc-es with consumption centers through long-term relationships and capi-tal-intensive businesses.

Thermal gener-ationWe are partners for distributors who supply natural gas as an affordable and environmental-ly-friendly energy source to house-holds, industries and vehicles.

Energy-intensive big industryWe supply natural gas to industry to enable its opti-mization of energy through a competitive BTU and improved productivity.

Midstream producersWe develop comprehensive and flexi-ble midstream projects to enable the viability of production by connecting it with the markets. We provide natural gas solutions as an efficient energy source.

Shared energy infrastructureWe effectively operate our current infrastructure and we execute Capex plans for the four businesses. At the same time, we engage in the geo-ex-pansion and interconnection of Colom-bia with other gas markets.

Colombia

Brazil

Peru

Guatemala

Electric energy

generation

Natural gasdistribution

Producer Transporter Distributor Commercialization

Energy trans-mission

Energy distribution

Natural gas transportation

Cities and mobilityWe work as partners for distributors to supply natural gas as an affordable and environmentally-friendly en-ergy source to households, industries and vehicles.

Shareholdings

GEB Minorityshareholders

99%

1%

We connect 65% of Co-lombian natu-ral gas users

We have 16 gas compression stations with capacity of 194,835 HP

Our network covers 17 Colombian departments

We have installed capacity of 830 MMCFD

We operate and maintain 4,017 km of gas pipe-lines

We executed 98.9% of our maintenance plan

Value propositionsWe understand the country’s energy needs, we connect supply and demand, and we are partners for gas transportation from new sources.

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TGI’s natural gas chain

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447 employees assure operational excellence and drive the development of new growth opportunities

Transmission Branch

EBITDA Net profit

2018 2019

360.4

329.0

2018 2019

468.8

Figures in millions of dollars

441.7

2018 2019

125.9136.0

Revenues

Economic results

6.1% -7.4%9.6%

2019Sustainability

Report

Sustainable operations with

social awareness

was the fifth consecutive year in which no deaths

were reported in operations, maintenance and project

development.

Family and Commu-nity Solar Energy

Project, 528 solar energy kits, to benefit 2,778 people.

We bring well-being to all Colombia

At year-end 2019, 54% was our share of the gas transportation

market in Colombia.

Banco CO2, 54 hectares of stra-tegic ecosystems

and 23 beneficiary families.

We fulfill our value proposition in

our expansion projects: Two-way mechanical operation at Ballena-

Barrancabermeja and the Vasconia- Puerto Romero

Loop of the Cusiana Phase IV project.

Regional Strategic Meetings, during which

95% of field employees contributed to the development

of the corporate strategy.

97%of employees certified in

a 50-hour online course on the Occupational Safety and Health Management System.

Windmills for water extraction, 10 windmills that benefit 15 ethnic

communities and 1,268 families.

The CGA system is in

operation, a single platform to manage gas

transportation that integrates the core business processes

with greater reliability and safety.

The New Operating Model offers our

employees development and growth opportunities, in four major regions and one knowledge and experience

center.

Dubai Project, we intervened 23 facilities to

improve the work conditions of all field employees, an invest-

ment worth COP 13,200 million.2019

Supplier Strengthening

Project, to benefit 36 companies and

associations.

We consolidated our position in the national and international natural

gas industry through Gastech 2019; Rio Pipeline, making us a benchmark in Latin America in terms of maintenance

management and use of technology; and over 20 top level events, including

forums, congresses and meetings.We maintained our

financial performance ratings and met our

financial targets.

In 2019, use of natural gas for

mobility and industry posted growth. Over 21.8

MMCFD of additional volume assure clean air

and productivity.

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2019OUR

MILESTONES

2019 Sustainability Report

With Social Awareness

Table of Contents

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03

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p.43

p.79p.35

EconomicDimension

Sustainable Strategy

Environmental Dimension

Governance, Ethics and Transparency

Social Dimension

82¯ Superior performance and profitability

85¯ Market and new business development

90¯ Growth Projects100¯ Operations with Integrity,

Reliability and Efficiency 103¯ Digital Transformation105¯ Supply Chain

38¯ Stakeholders40¯ Materiality

72¯ Biodiversity Management 74¯ Climate Strategy77¯ Noise 20¯ Corporate Governance

30¯ Ethics and Compliance

04¯ About this Report

06¯ Letter from the senior executives to shareholders and stakeholders

10¯ Management and Financial Report

46¯ Social strategy for the transformation of the territories56¯ Talent Management64¯ Vision Zero, Occupational

Safety and Health

Journalistic editing and graphic design Taller de Edición, Medellín

About this report(102-50) (102-45) We submit the 2019 Sustainability Report of Transportadora de Gas Internacional S. A. E.S.P. (TGI), which includes the most relevant data, the analysis of the economic, social and environmental impacts and the con-tributions of the activities performed by the company during the period from January 1 to December 31, 2019.

(102-51) (102-52) Our report is published annually, and this is our ninth con-secutive edition, which follows our latest report published in March 2019, covering performance during 2018.

(102-32) (102-49) This report has been formally reviewed and approved by the Company’s CEO, the President's Committee, the Corporate Governance Com-mittee of the Board of Directors, and the Board of Directors. Any clarifications or exceptions regarding coverage of information are explained throughout the document.

In this edition, we present our performance on each of the company’s mate-rial topics and the actions and initiatives we have implemented to contribute to the Sustainable Development Goals on which TGI has greatest impact, in line with the corporate commitment to the Principles of the United Nations Global Compact.

(102-54) Each chapter contains information about management of the sus-tainability dimensions in accordance with the core option of the Global Re-porting Initiative (GRI) standards, which are identified using the respective indicator code throughout the report.

(102-56) The external verification of the figures and contents of this docu-ment is important to us, and on this occasion the firm PricewaterhouseC-oopers Asesores Gerenciales Ltda. performed assurance on certain perfor-mance indicators included herein. The independent review report is included on page 155.

(102-53) Questions and inquiries in this regard will be addressed by the Plan-ning and Performance Department, which you may contact by email at [email protected]

Pursuant to Law 603/2000, TGI S. A. ESP declares that during 2019 it strictly complied with laws on the protection of intellectual property and copyright in performance of its activities, and in particular those related to the acquisition of software licenses.

We provide support to educational processes in the areas of influence of our operations to contribute to

the improvement of the life quality in the country

Letter from the senior executives to shareholders and stakeholdersDear Shareholders and Stakeholders,

very day, our main concern is to generate development to ensure that Colombia can rely on a perma-nent, timely and high-quality supply of natural gas through the develop-ment of new projects and the ade-quate operation of our infrastruc-ture. To achieve this, we combine our operational discipline and our understanding of new engineering

and technology developments. We are aware that our operation must be differentiated, and that we must work hand-in-hand with our neighboring communities: we bring progress, we support their economic development and we engage in partner-ships. At TGI we work with social awareness.

We therefore understand that our legacy goes beyond installing pipeline networks and operating gas compression stations, or achieving operating targets, economic growth and challenging goals. Our true legacy is to transform the territories, to understand their needs, to help their dreams come true.

This is reflected in high-impacting actions, for example by providing lighting for the homes of Wayuu indigenous communities in La Guajira by installing small solar panels, which not only ben-efit entire families, but hundreds of women who knit products every day and help drive the local economy. We made this and other dreams come

true, such as graduating 47 entrepreneur women in sustainable projects in Villavi-cencio and Paratebueno, Meta.

Another dream come true was our work with researchers at Universidad An-tonio Nariño on a pilot project to generate biogas from wastewater in a remote area of Boyacá. And we made the dream come true of building the first six classrooms with interactive tools in far-removed ar-eas. These are only four of the initiatives that materialize our desire to have genu-ine relations with the communities.

We also moved forward on other shared value projects such as Fundes Boyacá and Santander, Ecological Stoves and Banco2-CAS. Through these initiatives we strengthen entrepreneurship in the ter-

ritories to make the communities become agents for change and active participants in their solutions.

In 2019, we were also one of the first compa-nies in the country to support the national govern-ment’s mechanism of Works for Taxes, by execut-ing a project that will provide drinking water to the population of the municipality of La Paz, Cesar. Our support for this government initiative, which is targeted exclusively at Zomac municipalities, re-iterates our commitment to the regions that were most affected by the armed conflict.

Genuine and ongoing relations with the com-munities also enabled us to fulfill our indicator of preventing blockades on infrastructure operation and maintenance activities, with a reduction of al-most 50% compared to the target.

In combination with social awareness, the oth-er two cultural attributes adopted by our parent company Grupo Energía Bogotá are “Life Comes

First” and “Superior Performance”, which also enabled us to achieve outstanding performance during our 2019 fiscal year.

Behind these achievements lay the hands, hearts, dreams and talent of a team of over 447 employees commit-ted to consolidating their competencies. Each one of us has been empowered as a natural leader to drive TGI’s strategy and make it possible.

Our corporate culture values and promotes self-care, the protection of coworkers, safe infrastructures and the permanent search for the highest stan-dards of Occupational Safety and Health, which has enabled us to achieve the ex-emplary goal of zero serious accidents and deaths, by highlighting that at TGI, Life Comes First.

Our legacy goes beyond installing pipeline networks and operating gas compression stations, or achieving operating targets, economic profits and challenging goals.

E We work on closing the gender gap in all corporate and social bodies. Women hold 50% of all our management positions, as well as two senior executive positions.

Astrid Álvarez Hernández Chairwoman of the Board of Directors of TGI

Mauricio Vera MaldonadoCEO of TGI S. A. E.S.P.

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6¯ 2019 Sustainability Report 7

Chapter title ¯

Thank you for your support, Astrid Álvarez Hernández

Chairwoman of the Board of Directors of TGI.

Mauricio Vera MaldonadoCEO of TGI S. A. E.S.P.

Genuine relations, indigenous community at Marsella, Risaralda

At our company, Superior Performance is the re-sult of a solid sense of belonging, which enabled us to achieve efficient operations and good finan-cial results in 2019, in order to achieve sustain-able growth and to create shared value. At the end of the year we posted growth in revenues and EBITDA, we reduced our leverage and maintained our credit ratings.

We also completed our construction projects in record time, as in the case of the Puerto Rome-ro Vasconia Loop, as part of the Cusiana Phase IV project, through which the country has increased the capacity of all gas transportation systems by 6%. We also completed our inspec-tion and maintenance cycle to assure supplies through an inte-gral and reliable infrastructure.

These cultural attributes are not only our com-pass for action, but they also make us a compa-ny that is committed to sustainability. At TGI, we transport a type of energy that is competitive and clean, and we do so aligned with the Sustainable Development Goals and a solid corporate gover-nance model.

In this regard, we wish to highlight two rele-vant lines of these international standards: the environment and gender equality. To this effect, in 2019 we measured our emissions in order to establish a baseline and an intervention plan on the operations, and we acquired carbon bonds in tree plantations and natural forests in Antioquia, Tolima, Caldas and Santander.

In terms of the gender equality objective, we have worked on closing the gap in female partic-ipation in all corporate and social bodies. Women hold 50% of all our management positions, as well as two senior executive positions.

As the largest natural gas transportation company in Colombia, we have the ex-perience, operating capacity, resources, knowledge and solid stakeholder rela-tions to develop projects that will guaran-tee the country’s gas supplies until 2024.

But above all, we have highly motivat-ed talent that is focused on fulfilling our objectives. We are proud of the results of a survey on the Employee Engagement Indicator carried out in December 2019 by the firm Great Place to Work, in which we achieved a score of 80 points, which rates TGI as a Very Satisfactory company.

We are prepared to face the new chal-lenges we will encounter in 2020 and to achieve all our proposed goals. We thank you for your trust and support, and for advancing together with us to make nat-ural gas a clean, efficient and sustainable energy source. We thank you for joining us in our purpose of bringing well-being and progress throughout Colombia.

Behind these achievements lay the hands, hearts, dreams and talent of a team of over 447 employees committed to consolidating their competencies.


Chapter title ¯

he year 2019 was important for TGI in that we further consolidated our position as natural and dynamic leaders in the low-emissions ener-gy chain in Colombia, as is the case of natural gas. In this way we ratify our commitment to moving forward towards our transformation and consolidation in the industry as the ideal partner for the transportation of natural gas from new sources.

Below we report the main results obtained during the reporting period in each of the dimen-sions included in the report, while highlighting the attributes of the culture of Grupo Energía Bogotá, of which we are members:

The economic and industrial environmentThe Colombian natural gas industry is at a junc-ture when critical decisions must be made to en-sure the fulfillment of demand through a variety of complementary sources. It also requires reg-ulations that enable profitable long-term invest-ments, the full utilization of existing resources, the development of future projects and fair rates to suit the needs of the various markets.

To this effect, we have promoted and propitiat-ed industry meetings aimed at building trust, shar-ing information and offering a perspective on the challenges faced by the industry, in line with glob-al trends and the generation of ideas to support the decisions and common purposes in favor of all the links of the chain in the medium and long term.

Additionally, we managed to approach the na-tional government to discuss a policy on reliability of national supplies, and we worked to contribute to the permanence of an integrated system with responsible regulation.Progress was made in promoting the growth of the culture of natural gas as a clean, efficient and

affordable energy source, and the com-pany is now willing to increase its invest-ments through adequate planning and genuine relations that contribute to the development of the neighboring commu-nities to our operations.

TGI consolidated its position in the in-dustry through its proactive participation in strategic events. One of these was Gas-tech 2019, during which we participated for the first time as an exhibitor at an in-ternational fair for the industry. We also

shared experiences at the highest tech-nical level during national events, such as the 2019 Naturgas Congress, Enercol 2019, the Oil and Gas Summit and Agen-da TGI–ACP; and we closed the year by increasing the profile of our grand annual event, the 2019 TGI Forum, which created an opportunity for dialog between repre-sentatives of the national government and the energy industry, as well as cus-tomers and suppliers, on the challenges and the outlook for natural gas.

We support and organize appropriate meetings to strengthen confidence in the development of the energy industry over the medium and long term, and to promote the expansion and use of natural gas.

In 2019, we maintained our credit ratings, which signal the market’s support and investor confidence in the company.

T

Management and Financial Report

Solid financial management with a future outlookThe highlights of our financial performance last year include revenue growth of 6.1%, which to-taled USD 468.8 million, 3.2% above the budget established for 2019; repayment of the balance of a syndicated loan for USD 40 million, with the company’s own resources; and strict control over costs, expenses and Capex, which contribute to maintaining a solid financial structure.

In this context, we highlight the reduction of our leverage, measured as total debt/EBITDA, which reached 3.15 as a result of stronger cash flow and the reduction of corporate debt, which in turn enabled maintaining our investment grade debt rating at Baa3 with stable outlook from Moody’s, BBB with stable outlook from Fitch Rat-

ings and BBB- with stable outlook from Standard & Poor’s.

These figures increase investor con-fidence, reflect the company’s adequate financial management and broaden the possibility of acquiring debt for the develop-ment of the business plan at a lower cost.

Community of the municipality of El Molino, in La Guajira

1110¯ 2019 Sustainability Report

Strategic ManagementThe Corporate Strategic Plan guides our man-agement as connectors between the sources of natural gas and the consumer centers, through midstream solutions (hydrocarbons transporta-tion), based on capital-intensive businesses and long-term relationships.

To this end, we increasingly consolidate our po-sition as leaders in the energy chain with strengths such as: human resources with superior perfor-mance; technical, methodological and operational capabilities that facilitate our growth plans, and genuine relations with the communities.

In 2019, these corporate qualities were instru-mental in our capacity to fulfill our value proposi-tion through the delivery of two projects that facil-itate gas supplies: the start-up of the two-way gas pipeline of Ballena - Barrancabermeja, which was delivered one month ahead of schedule and will facilitate the supplies to the north of the country, and the Puerto Romero - Vasconia Loop of the Cu-siana Phase IV project, with 22.5 kilometers of 30-inch pipes, which increases out transportation ca-pacity by 46 MMCFD, and which began to operate in December 2019, one month ahead of schedule.

Also, jointly with Grupo Energía Bogotá, we made progress in the strategic review of vertical integration initiatives in the gas industry, and in seeking changes to regulatory restrictions to enable us to move forward in structuring new projects and businesses to guarantee our perma-nence and revenue growth.

A topic of major relevance for our industry is related to decisions by the national government to lead the development of re-gasification projects to assure supplies after 2024. In this regard, we are prepared to back any projects the Mining and Energy Planning Unit (UPME, for the Spanish original) and the Ministry of Mines and Ener-

gy consider necessary for the country.As part of our Integrity Management

program, in 2019 we identified and mon-itored 97% of the network that is suit-able for inspection, which enables us to carry out maintenance plans to ensure the provision of the agreed services, an-ticipate critical events and assure the system’s reliability.

We have also changed the operating arrangement in a manner that is more integrated with construction. To this end, we have developed 40 in-house standards that translate into greater effectiveness of the reliability mainte-nance processes.

We surpassed the goal of addition-al volume and market development,

Our capacity to structure and build natural gas infrastructure projects is complemented by our vision of the future, our genuine relations and the superior performance of our team.

which was set at 18 MMCFD, against an actual 21.8 MMCFD, which ensures clean air and pro-ductivity for Colombia. This is reflected in our own indicators: 15.1 MMCFD for industrial cli-ents and 6.7 MMCFD for newly converted and dedicated vehicles.

We wish to highlight the start-up of operations of over 800 vehicles powered by natural gas, in-cluding 21 buses for the fleet of Masivo Integrado de Occidente (MIO) in Cali, and the awarding of 534 buses registered as VNG for Sistema Integra-do de Transporte Masivo (SITP) in Bogotá.

We have programs in place for the develop-ment and promotion of our employees’ talent, which translate into a sense of belonging and commitment. Additionally, the strategic actions

Astrid Álvarez, Chairwoman of our Board of Directors, with the Wayuu community, in La Guajira

on Occupational Safety and Health are reflected in the Zero Vision project, led by Grupo Energía Bogotá, in which the indis-pensable requirements for decision-mak-ing and day-to-day operations are the concepts of Life Comes First, safe envi-ronments, self-care and the target of zero serious accidents and deaths to 2027.

In 2019, upgrades were made to 37 ad-ditional facilities to mitigate risks of work at heights and in confined spaces, for the safety of our field personnel, for a total of 53 upgraded facilities between 2018 and 2019. We will cover 268 facilities by 2025, to fulfill the goal of zero critical infrastruc-ture facilities.


Another attribute that enables us to obtain the sup-port from neighboring communities for our facili-ties is our social awareness, which prompts us to maintain genuine relations with the communities. In 2019, 36 indigenous groups were identified in the area of influence of Ballena (La Guajira), and social projects were developed adjusted to the needs of preventive and corrective maintenance of wind-mills, solar energy for families and communities, Walekeru (knitting under the moon) and strength-ening of the traditional economy, among others.

We carried out shared value projects such as Fundes Boyacá and Santander, through which 36 small entrepreneurs were able to successfully launch their ventures; eco-efficient stoves and wood energy systems, Banco2-CAS, See Women Latam, Biogas project and Interactive Solar Education.

In line with the new arrangement proposed by the national government, under which companies pay part of their income tax bills by building proj-ects in the areas that were most affected by the armed conflict, the first project under the Works for Taxes modality was carried out, which will in-crease the coverage and service quality of drink-ing water through improvements to the water and sewage system of the urban population of the mu-nicipality of La Paz (Cesar).

Vision of the FutureTGI is a company that believes in sustainable de-velopment. The type of energy we carry is com-petitive and clean and our management is aligned with the Sustainable Development Goals.

We contribute to the country’s economic growth and to the well-being of its people through an effi-cient, transparent and progressive operation.

To this end, we support an energy supply plan that assures supplies for Colombia, under condi-tions for investment, profitability, fair prices, envi-ronmental balance and social development.

We believe in the diversity of the system, and in this sense we hope regulatory decisions to be developed in Colombia will honor the history of a market that requires more thrust. We support decisions aimed at migrating from a pricing sys-tem based on distance to methodologies based on system inputs and outputs, as is the case in international markets, which enable establishing a single rate to regulate gas prices, rather than pricing its transportation.

In 2024, the industry will face challenges re-lated to sourcing, and TGI will be a key player, as stated in our central theme of “connecting sourc-es to consumption centers”.

We additionally study other options to comple-ment renewable energies and we are interested in projects related to storage, as well as hydrogen, with the support of Grupo Energía Bogotá.Our central premise is to ensure permanence and revenue growth in harmony with the environment, the communities and long-term development.

Some of the main challenges we will face in 2020 will be to maximize financial efficiency, drive profitable growth and structure new business-es and services to develop midstream markets and solutions.

In terms of our social approach, we will con-tinue upgrading the facilities to assure Occupa-tional Safety and Health, with investments of over COP 8 billion.

We will continue to move forward in our trans-formation initiative with the plan to close gaps between our current culture and the culture we desire in order to consolidate the Corporate Stra-

tegic Plan, and the basis for our suc-cess will be to focus on the challenge of Individual Leadership Plans, and the technical and personal development of our employees.We have also defined and implemented a shared value portfolio that enables genu-ine relations with our operations’ neigh-boring communities.

As the largest gas transportation company in the country, we set ambi-tious goals in order to achieve extraor-dinary results.

We promote the well-being and devel-opment of the communities

Indigenous groups in La Guajira, small businesses in Boyacá and Santander, and communities in Cesar, Valle del Cauca and Santander, were the main beneficiaries of our social actions in 2019.

37company facilities were upgraded in 2019 to mitigate risks of work at heights and in confined spaces, as part of our commitment to ensuring the safety of our personnel.


We support the transmission of ancestral values from generation to generation

01

20¯ Corporate Governance30¯ Ethics and Transparency


Protagonists of our social awareness

Women with a sustainable vision

L

694

ilia Parra is 56 years old and lives on a farm with her daughter. She receives a pension and she spends her days raising cows, pigs, calves and hens. Her routine at Mararabe, a rural dis-trict of Paratebueno (Cundinamarca), changed since she attended the training of the program Propositional Leadership for Rural Women. The empowerment she received at the workshops immediately began to translate into productive ideas, in her considering becoming an agent of

change in her community.The project in this rural district consisted in taking used

tires to turn them into ecological flower pots to decorate the schoolhouse in the area, where she was once a teach-er and coordinator, and which is also used as a communi-ty meeting house. It is the first step. “This is the first time

women from this municipality have received a course like this. Country folk are usually too shy to talk, to speak out, to pro-pose, because we are uneducated, but they provided us the tools. They taught us to stop thinking that just because there is no money no projects can be undertaken. We all came out highly motivated,” said Lilia. Her happiness was even greater when last February 11 she and another 47 women graduated as propositional leaders during a ceremony in Villavicencio.

The rural districts of Mararabe and Macapay Alto in Pa-ratebueno were not the only recipients of this program. Train-ing was also provided to women in the rural districts of Alto Pompeya and Peralonso (of Villavicencio), and to 25 Wayuu communities in La Guajira. SEE Women Latam is a strategic line of the consulting firm SEE Investing that offers programs and conferences to build sustainability based on a gender ap-proach. TGI assisted and designed the schedule in the field.

Four community projects were conceived and implemented: in addition to the ecological flower pots, other projects involve repairs to the children’s bathrooms at the Macapay sports cen-ter, reforestation in Peralonso and training in values in Alto Pompeya. In La Guajira, the leadership of Wayuu women was strengthened while preserving their culture and customs. The women have the final say.

leaders were strengthened thanks to the program.

The women leaders program is aligned with Sustainable Development Goals (SDG) 4, 5, 8 and 17.

Wayuu women are interested in receiving training in leadership and strategies to commercialize their knit works.

In Villavicencio and Paratebueno, the women displayed interest in economic prosperity based on sustainability

The objective of the program Propositional Leadership for Rural Women, promoted by SEE Women Latam with TGI’s support, is to develop projects led by entrepreneur women that represent an opportunity for their communities.



Corporate Governance

(103-1) Why is this topic important?

Acting in a framework of integrity and ethics, based on corporate values, en-ables us to fulfill our central theme of creating and providing midstream solu-tions that are characterized by their continuity, reliability and excellence. We carry out our operations in a framework of integrity which, aligned with the cor-porate values of Grupo Energía Bogotá, enables us to fulfill the commitments we have made with our stakeholders and to build long-term relationships.

Decision-making at TGI is guided by technical criteria, but above all, by ele-ments in favor of our social, environmen-tal and economic commitments to pro-vide solutions in the midstream sector with excellence, continuity and reliability.

Our control architecture and our corporate governance mechanisms and tools are key inputs for making deci-sions that are informed, ethical and with awareness, as well as to provide relevant and transparent information to the com-munities, investors, employees and other stakeholders, to strengthen their percep-tions, trust and support.

(103-2) (103-3) How is it managed?We consolidate and strengthen our corporate governance practices based on the guidelines of our parent company, GEB. We also follow the guidelines and good practices of the Financial Superintendence of Colombia, the principles of the Organization for Economic Co-operation and Devel-opment (OECD) and the Development Bank of Latin Amer-ica (CAF) in order to ensure the transparency, equity and integrity of our processes.

The implementation of the corporate governance model is specified in TGI’s internal adoption of the instruments approved in previous years, with specific rules and proce-dures that provide guidance for strategic decision-making and relevant topics in order to fulfill our business objec-tives. The implementation of this model has implied an ongoing cultural transformation within TGI’s teams, under the leadership of the Legal and Services Department and the Corporate Affairs Office.

(103-3) Additionally, as part of TGI’s Integrated Manage-ment System, corporate governance actions are assessed and monitored in detail, and it is currently complemented by mechanisms such as:

• Internal audits and audits by Grupo Energía Bogotá.• Internal control systems.• Biannual assessment by the Corporate Governance

Committee on compliance with the corporate gover-nance rules adopted by TGI.

• Self-assessment of the Board of Directors.

(102-18) (Own) (102-22)(102-23)Corporate Governance Structure

Chart of Board members’ qualifications, experience and expertise

Executive and management bodies

Corporate governance at TGI is comprised by:

A) General Meeting of Shareholders, where the majority shareholder is Grupo Energía Bogotá.

B) Board of Directors, comprised by seven members elect-ed by the General Meeting of Shareholders. In 2019, 36% of Board members were replaced; the new Board is comprised by one woman and six men, including three GEB employees and four independent members.

C) Committees of the Board of Directors, management committees and strategic forums, which advise the Board of Directors and the CEO, respectively. The management committees were regulated by means of CEO guidelines No. 004/2018 and No. 015/2019, which amended the management committees and approved the establishment of strategic forums.

Statutory Auditor

General Meeting of Shareholders Comprised by 12 shareholders

Comprised by 7 members with their respective alternates

Each committee is comprised by 3 Board members

Board of Directors

Operating Committee

Audit and Risk Committee

Financial and Investment Committee

Compensation Committee

Corporate Governance Committee

Risks • • • • • •

Internal Control • •

Corporate Finance • • • • • •

Commercial Affairs • • • • • • •

Energy industry (energy) • • • •

Energy industry (gas) • • • •

Crisis management • • • • •

Legal affairs

Sustainability • • • • • •

Governance • • • •

Public policy •

International • • • • • • •

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See the annexes for additional information on individual Board members, their participation in other boards of directors, com-petencies related to social and environmental matters, and other information.



Astrid Álvarez HernándezShareholder> Chairwoman of the Board of Directors> CEO of GEB> Civil engineer> Corporate Governance and Compensation

Committees> Member for 4 years> 100% attendance> Expertise in strategic advisory for national

and international companies

Board of DirectorsThe Board of Directors is the highest governance body at TGI, and according to bylaw provisions it has sufficient au-thority to adopt all decisions required to achieve the corporate purpose. Its main responsibilities are to establish guide-lines and provide orientation to senior management on the company’s strategy and operations, appoint the CEO, over-see performance, and ensure the effec-tive implementation of the governance, control and financial reporting systems, always in the framework of provisions es-tablished by law, in the bylaws and by the business group.

Jorge Enrique Cote VelosaIndependent> CEO of Carvajal Tecnología y Servicios> Business administrator> Audit and Risk and Financial and Investment

Committees> Member for 5 months> 100% attendance> Expertise in the definition, design and imple-

mentation of corporate strategic plans

Álvaro Villasante LosadaShareholder> Low Emission Generation Chief Executive at

GEB> Business administrator> Operations and Compensation Committees> Member for 1.10 years> 100% attendance> Expertise in development and investments in

the renewable energies industry

Héctor José Fajardo OlarteIndependent> Advisor of Ecopetrol> Chemical engineer> Financial and Investment and Operations

Committees> Member for 2.10 years> 93% attendance> Expertise in marketing, commercial and busi-

ness development, operations and manage-ment of oil and gas pipelines.

Mario Martín Mejía Del CarpioShareholder> CEO of Cálidda> Business administrator> Audit and Risks and Corporate Governance

Committees> Member for 10 months> 36% attendance> Expertise in financial planning, structuring of

budgets and internal auditing.Daniel Rodríguez Ríos Independent> Partner of Base Property Group> Architect> Audit and Risks and Corporate Governance

Committees> Member for 2.10 years> 86% attendance> Expertise in corporate restructuring and re-en-

gineering processes

José Fernando Montoya CarrilloIndependent> Registered Agent of Doblefer y Serifer> Chemical engineer> Financial and Investment and Operations

Committees> Member for 3.10 years> 86% attendance> Expertise in recovery of markets, distribution

network development and management, cul-tural restructuring of companies.

(102-22) (102-23)(102-32)



(102-34) Critical concerns brought to the attention of the Board of Directors

During 2019, by means of corporate assessments and monitoring mechanisms, the following topics related to the company’s sustainable management were identified. They were brought to the attention of the Board, which assessed and managed them as described below:

All instruments of corporate governance at TGI were up-dated based on the guidelines of our parent company, GEB, and its democratization process.

A communications plan was implemented to promote the corporate governance culture, based on the slogan “Corpo-rate governance involves all of us”, and it invites everyone to experience corporate governance in day-to-day activi-ties as something that is always present and influences the decisions of every employee, to ensure sustainability and long-term growth. The communications plan reached all TGI employees, both in the field and at the administrative offices, through the internal communications channels.

• Following a trial run of the Diligent Boards technological tool in 2018, the Board of Di-rectors has adopted it as the only means for sending information to Board members, thereby promoting our digital transformation, strengthening security and offering greater confidentiality, transparency and control over the information sent to Board members.

• Certification of the corporate governance team in best corporate governance practices, through CESA and the IE Business School in Madrid, Spain.

• Even though TGI is not legally required to have any independent Board members, as a good corporate governance practice, the company has included independent members in highest governance body. In 2019, the Board of Direc-tors of TGI had four independent members, in order to increase the diversity, solidity and im-partiality of its decisions. (415-1) (Own) During 2019, contributions worth

COP 463 million were made to the different in-dustry associations we belong to, including the National Association of Public Utilities and Com-munications Companies (Andesco, for the origi-nal in Spanish), the National Business Association (ANDI, for the original in Spanish), Naturgas, Con-

Topic Mechanisms used to address and assess them

In reviewing the gas production figures published by the Ministry of Mines and Energy, it was found that the main natural gas sourc-es in Colombia are declining.

It was submitted to the Board of Directors as part of the review of the company’s strategy regarding the study of gas sources performed by an external consultant. Studies on the possibility of importing gas were also submitted to the Board of Directors.

Results

A major achievement in 2019 was to have developed an internal culture that is aware of and values corporate governance as a day-to-day experience that influences decision-making and creates value for our business.

Corporate Group

Agreement

Rules of the Corporate

Governance Committee


Code

Rules of the Operating

Committee


Policy

Rules of the Compensation

Committee

Rules of the General Meeting of Shareholders

Rules of the Financial and Investment Committee

Rules of the Board of Directors

Rules of the Audit and Risk

Committee

Policy on Transactions with

Related Parties

All employees received training on corporate governance in 2019

centra and the Comité Intergremial Empre-sarial del Valle del Cauca.

(405-1) (Own) The Board of Directors is currently chaired by the only woman on the Board, equivalent to 14% of total Board members. The Board members are between the ages of 66 and 34.

See the annexes for additional informa-tion on diversity of the Board of Directors.

CHALLENGES• Continue to strengthen the corporate gover-

nance culture among TGI employees.• Verify application of corporate governance in

support areas to ensure it is a day-to-day topic among the primary teams and other collective and monitoring committees.



RISKS

(103-1) Why is this topic important? (102-15) Risk management enables the timely de-tection of deviations in order to achieve strategic objectives and perform projects and processes. It ensures that risks are analyzed for decision-mak-ing purposes and that controls are established to prevent their materialization in adverse situations.

It also enables us to promote preventive think-ing as part of a corporate culture that identifies risks and opportunities for the conformance of our processes, products and services; to make asser-tive decisions in situations involving uncertainty, and to generate confidence by effectively identi-fying and controlling all key aspects.

(103-2) How is it managed? Risk management starts out with the formulation, defini-tion and annual review of the corporate strategy. Through work sessions with senior management and a cross-dis-ciplinary team, we define the company’s strategic direc-tion and the risks and uncertain events that could affect achievement of the defined goals.

In this manner, the process ensures that we identify the control actions required to prevent and mitigate ad-verse situations.

One of the strategies to promote the risk management culture is to strengthen skills and competencies related to risk identification, analysis and monitoring. It should also be noted that risk management forms part of the control architecture, as the first line of defense involving all employees, those responsible for the processes and the audit manager. Under this arrangement, we assess compliance with the Risk Management Policy, the Risk Management System Manual and other related docu-ments, which are also monitored and controlled by the Audit and Risk Committees of TGI and GEB.

No. Strategic risk Description

1 Regulatory changes unfavorable to the company’s interests.

Changes in existing regulations or enactment of new ones that run against the company’s interests.

2

Failure to fulfill the value proposition of TGI’s investment projects due to deviations in scope, time or cost.

Failure to deliver an investment project on time and in accordance with the customer’s quality attributes and specifications of the infrastructure expan-sion and upgrade works, or within the project’s established budget.

3Work accidents that affect the health of employees or contractors.

Effects on the health of employees and contractors due to work-related inci-dents and occupational illnesses.

4 Operational events that interrupt transportation.

Risk events (force majeure/excusable event) that threaten to interrupt busi-ness operations in the sections Cusiana – Vasconia, Vasconia Mariquita to Cali and Cusiana – Apiay.

5Social incidents during performance of TGI operations or projects.

Events, circumstances and factors that gradually or suddenly generate a situ-ation of discontent in any external stakeholder group (community, civil society organizations, authorities, contractors, suppliers, etc.) that gives rise to block-ades of access roads or work stoppages, that prevent normal performance of the projects and operations in the areas of influence.

6 Possible penalties by the environmental authority.

Failure to comply with environmental regulations in effect in any of the phases of the project’s life cycle, giving rise to administrative proceedings.

7 Failure to fulfill the business plan.

Not reaching the long-term (financial) targets that measure business per-formance: revenues, EBITDA, financial costs, debt/EBITDA ratio, costs and expenses.

8 Fraud and Corruption.

Any dishonest act or intentional or negligent omission designed to deceive others and cause losses to the victim or a benefit for the author. Failure to pre-vent, detect, investigate and correct acts of fraud or corruption at or against GEB companies.

9 Failure to incorporate new businesses that create value.

Being unable to make new deals and investments that enable the company’s profitable growth.

10 Not using the Ballena -Barranca infrastructure.

Being unable to develop new viable gas sources that will provide remuner-ation to the Ballena - Barrancabermeja gas pipeline after December 2020.

11 Demand fails to grow according to expectations.

Not being able to renew or enter into additional contracts in terms that are similar or better than current agreements.

12 Unavailability of information systems.

Weaknesses in the integrity and availability of information assets, which may affect competitiveness, profitability and corporate image.

13Not having qualified and motivated human capital to execute the strategy.

Not having the personnel with the required qualifications in terms of education, experience, skills and aptitudes to perform their duties, and to remain motivated to achieve the strategic objectives.

14 Economic or reputation losses due to unfavorable legal decisions.

Not achieving adequate business and legal management for the normal oper-ation and growth of TGI.

(Own) (102-15) TGI Strategic Risks

75% of employees were trained in risk management competencies



RESULTS

• Fulfillment of 99% of corporate strategic objectives.

• 75% of employees completed an online course on risk management competencies.

• Work in coordination with the President's Com-mittee, through the submission of quarterly performance and monitoring reports, and the results of the strategic risk mitigation actions.

• Investment project decision-making based on corporate risk analysis.

• Low level of materialization, since only one risk-related event was reported. Operational events that interrupt transportation. See the annexes for greater details on the mitigation of potential impacts at TGI.

GOALS

Short term• Ensure that all organization levels understand

the risk management methodology and its im-plementation.

• Provide risk assessment support to investment projects in line with the Maturity and Value Cre-ation Model (MMCV, for the original in Spanish).

• Assess the maturity of the risk management system and document relevant actions for its continuous improvement.

• Align the Risk Management System with the im-provement process and review of the business continuity plan.

Medium term• Ensure that the risk matrix is updated to incor-

porate any changes in the corporate strategy.• Systematize the risk management process

through an application that will manage re-ports, indicators and recording of any events that may materialize.

Long term• Have a solid quantitative risk management sys-

tem in place and a methodology that applies to all the company’s areas and processes.

A qualified and motivated team is our greatest strength for man-aging risks and achieving our strategy

(103-3)

(103-2)



Ethics and Compliance


Our aim is to create trust and build valuable rela-tionships with our stakeholders through four cor-porate values: transparency, respect, integrity and equity, which enable us to act with firmness, recti-tude, honesty and consistency, in order to produce a positive and inclusive social impact, and manage in an objective, clear and verifiable manner.

This exercise requires us to consider collective interests, individual diversity and the sustainabil-ity of natural resources and institutions before deciding to take action.

Also in this regard, we promote a culture of transparency in our actions and we have zero tol-erance towards fraud, money laundering, financ-ing of terrorism and corruption.

(103-2) (103-3)

How is it managed?

(102-16) In line with the Ethics and Compliance Program of Grupo Energía Bogotá, our corporate group’s parent com-pany, and with the aim of ensuring an ethical and trans-parent approach in managing our business operations, we have ethical standards of behavior grouped under the fol-lowing action items:

Prevention• Policy on Internal Control and Prevention of Fraud and

Corruption.• Code of Ethics.• Comprehensive System for the Prevention and Control

of Money Laundering and Terrorism Financing (SIPLA, for the original in Spanish).

• Anti-Corruption Plan and Citizen Assistance.• Fraud and Corruption Risk Management System.

The Compliance Officer and management-level employ-ees are responsible for the dissemination of the Policy on Internal Control and Prevention of Fraud and Corruption. The Ethics and Compliance Committee and the Compli-ance Officer are responsible for monitoring and supervis-ing compliance with the Code of Ethics and the Policy on Internal Control and Prevention of Fraud and Corruption. The Committee also addresses any inquiries related to their application.

The Compliance Office is responsible for disseminating TGI’s Ethics and Compliance Program among employees and stakeholders.

** For additional information, follow this link:https://www.tgi.com.co/nosotros/gobierno-corporativo/etica-y-transparencia

(205-1) The strategic risk of fraud and corruption is de-fined by GEB, as the corporate group’s parent company. Additionally, TGI has developed a fraud and corruption risk matrix, based on which the risks of relevant business oper-ational processes were identified and assessed, including the following: • Changing figures in the financial statements.• Improper management of financial resources for per-

sonal benefit or to the benefit of a third party.• Improper use of commercial information in favor or

against a third party.

• Tampering with measurement data.• Improper use of company assets for activities

unrelated to the job.• Payments to government officials to benefit

oneself or a third party.• Favoring and/or directing the selection of a

proponent.• Improper dealing with royalties.

Detection• Ethical Channel.• Internal and external audits.

Investigation• Protocol for reports received through the Eth-

ical Channel.

The documents of the Ethics and Compliance Pro-gram (codes, manuals, procedures and protocols) incorporate the guidelines issued by GEB and are approved by the appropriate bodies in accordance to corporate governance rules. The Code of Eth-ics is the product of a participative exercise by employees, and was approved by the President's Committees of Grupo Energía Bogotá and of TGI. It is permanently disseminated among stakeholders by means of campaigns to strengthen the corpo-rate ethics culture, during which the components

of the Ethics and Compliance Program are communicated, including the Code of Ethics, the Ethical Channel, Conflicts of Interest, the Comprehensive System for the Prevention and Control of Money Laundering and Terrorist Financing, the Transnational Anti-bribery Law, the an-ti-corruption and citizen assistance plan, and personal data protection.

Participation in ethics initiatives

• TGI will participate in the measure-ment of corporate transparency, based on a recent invitation to partic-ipate by Transparencia por Colombia.

• We are members of the Association of Compliance Officers.

• Pursuant to the three lines of defense control architecture established in 2019, Compliance and Internal Au-diting duties were segregated and a new Compliance Office was created, which is responsible for the Ethics and Compliance Program. Therefore, TGI has implemented this model, with its respective reports to senior man-agement and governance bodies.

Control architecture

Transparency, integrity, respect and equity are the four corporate values that enable us to act with firmness, rectitude, honesty and consistency.

Senior Management

Exte

rnal

con

trol

ent

ities

/Ext

erna

l aud

its

Regu

lato

rs

Governance Bodies/Board/Audit Committee

1. Line of defense 2. Line of defense 3. Line of defense

Senior management controls

Financial controls

Internal AuditorRisk Management

Internal control activities

Security (information and physical)

Quality System

Compliance



Components of the Ethics and Compliance Program

(102-17) The Ethical Channel enables stake-holders to report any event or conduct related to alleged fraud or corruption, or any unethical be-havior, or to field inquiries on ethical dilemmas. In the case of conflicts of interest, employees should seek advice initially from the direct supervisor, or contact the Compliance Office or the Ethical Channel, which is managed by a third party to en-sure its independence. Reports or inquiries may be made by phone at: 01 8000125470, or by email

at [email protected] or by accessing the Ethical Channel, which is published at the following link: https://www.tgi.com.co/nosotros/gobierno-cor-porativo/etica-y-transparencia/canal-etico

In the event of any breach of the Internal Work Regulations, the following are the established pen-alties: verbal reprimand, suspensions ranging from one day to two months, or termination of the work contract for just cause.

No. 1Code of Ethics

No. 5Anti-Corruption Plan and Citizen

Assistance

No. 6Data protection

No. 2Ethical Channel and Conflicts of

Interest

No. 9Preventive

strategic litigation

No. 4Law of transparency

and access to information

No. 7Transnational Anti-

bribery Law

No. 3SIPLA Comprehensive

System for the Prevention and Control

of ML/TF

No. 8Control entities

RESULTS

• Consolidation of the Ethics and Compliance Program based on the control architecture model and in accor-dance with the guidelines of the parent company GEB.

• (205-1) The fraud and corruption risk matrix for key com-pany processes was updated, based on which 19 risks were identified and assessed.

• (205-2) Training on the control architecture and the Eth-ics and Compliance Program for 390 employees of the 447 active employees on the payroll, equivalent to 87% coverage at December 31.

• (205-2) 100% of Board members were informed and one Board member (14%) was trained in anti-corruption.

• (205-2) The Ethics and Compliance Program was com-municated to 58 of the 290 suppliers, equivalent to 20% coverage.

• Measurement of the ethical climate among employees, suppliers and customers, during which opportunities for improvement were detected, and on which action plans were developed and implemented.

• Adhesion to the Code of Ethics and declaration of conflicts of interest through digital channels by 357 employees.

• (Own) Optimal operation of the Ethical Channel through the website, email and telephone line. Eight reports were filed, none of which was relevant.

• (205-3)(Own) During 2019, no cases of corruption were reported.

• Timely performance of the process of verification in control lists in compliance with the Manual for the Pre-vention and Control of Asset Laundering and Terrorist Financing.

• All inquiries by supervision authorities were fielded, with no relevant findings.

• (415-1) (Own) No contributions were made to political parties and/or their representatives. The Code of Ethics was updated to include this prohibition.

CHALLENGES

• Implementation of monitoring and control mechanisms.• Monitor the fraud and corruption risk matrix.• Achieve the assimilation of the concepts and good prac-

tices of the Ethics and Compliance Program by a signifi-cant percentage of employees.

• Implement the regulatory compliance matrix.

Auditing

Auditing at TGI is a cross-cutting pro-cess in the organization. Its action plan is based on management of the strate-gic risks of the Corporate Strategic Plan and the needs of the internal processes of the different areas. It reports admin-istratively to the CEO, and operational-ly to the Audit Committee of the Board of Directors.

ACHIEVEMENTS

• International certification from the Global Institute of Internal Auditors, based in the United States, which cer-tified the quality of the area’s process-es in accordance with best internation-al practices.

• Fulfillment of the Annual Audit Plan, which this year focused on risks, proj-ects, operations and contract fulfill-ment, environmental management, OSH and infrastructure maintenance.

CHALLENGES

• Systematize the auditing processes.• Implement closing of gaps and im-

provement opportunities and annual assessment of the audit action plans.

68%

87%

of our operating processes were prioritized and assessed in 2019

of workers received training on Ethics and Compliance



02

Good relations with the neighboring communities to our op-erations enable us to grow in a balanced manner with social

support.

38¯ Stakeholders40¯ Materiality


Protagonists of our social awarenessProtagonists of our social awareness

And there was light!

T

528

he brief but clear reflection made by Daysi Ca-margo reminds of us the importance of having simple necessities. “Here we had no light other than the sun and the moon. There were a few light bulbs, but they were seldom used because we cannot afford batteries. We make a living by knitting, and now that we are able to knit at night we will be able to overcome the hunger that affects our community, because if we knit more, we sell more, and we can buy food.”

She is the highest authority of the Mayali community, where 56 families of the Epinayú clan live, in one of the many desert landscapes of Manaure, in the department of La Guajira. Hers was one of the 14 beneficiary communities that received 528 solar kits -one per family- consisting of a

10 watt solar panel, a solar radio, 2 light bulbs, a charger and a flashlight.

“We the Wayuu, those of us who have no education, which is the majority, must make a living by knitting mochi-las (Wayuu rucksack) and hammocks, and we have more time to knit at night, because during the day we have many chores in the field,” Daysi explained.

These activities form part of the family and community solar energy project, through which TGI honors its commit-ment to support the communities in its areas of influence. Even though we are working jointly with other partners to de-velop longer-term projects, the community recognizes that contributions of this type are important for improving their life quality. Investment in the project totaled COP 149 million.

The 14 communities that now have artificial light in their homes are Massitchi, Anaripa, Uluwalao, Lancelia, Tronjomana, Maspara, Panerrakat, Mashpa, Apalaschón, Patsuaka, Suttalú, Urraichikat, Majaly and Manizales. Now they are not only united by knitting. At night, when Daysi begins to knit, along with the 55 families of her community, they will remember that they are not alone, and that they received light from a friend to fulfill their needs.

families from the 14 communities of the Epinayú clan received the solar kits

This program is aligned with SDG 7: Ensure access to affordable, reliable, sustainable and modern energy for all.

A family and community solar energy project made it possible for women knitters of 528 families from several communities of the Wayuu ethnic people of La Guajira to receive solar kits to light up their homes and knit at night.


Stakeholders Communications channel

Frequency of relations Topics of interest Location in the

Sustainability Report

Shareholders and investors

Corporate governancereport.

Annual

The company’s manage-ment and compliance with the regulatory framework.

See Corporate Governance, Eth-ics and Transparency, Superior Performance and Profitability, Market and New Business Development, and Operations with Integrity, Reliability and Efficiency.

Quarterly results report. Quarterly

Financial, commercial and operating matters.Conference on

results. Quarterly

Board of Directors

Meetings of the Board of Directors and of Board Committees

Ongoing

Corporate management, financial,commercial and operat-ing matters.

See Corporate Governance, Eth-ics and Transparency, Superior Performance and Profitability, Market and New Business Development, and Operations with Integrity, Reliability and Efficiency.

Financial entities Response to inquiries. Ongoing Financial matters.

See Superior Performance and Profitability, Market and New Business Development and Op-erations with Integrity, Reliability and Efficiency.

Results report. QuarterlyFinancial, commercial and operating matters.Conference on

results. Quarterly

Customers EmailWritten communications,telephone/chat,business visits,corporate events.

OngoingOutlook of gas supplies and use. Relations to create synergies.

See Management Report, Market and New Business Development and Operations with Integrity, Reliability and Efficiency.

Employees and contractors Internal

communicationschannels.

Ongoing

Operational topics, labor relations, health and safety, ethical manage-ment and corporate governance.

See Corporate Governance, Ethics and Transparency, Talent Management, Zero Vision and Operations with Integrity, Reli-ability and Efficiency.

Authorities and control entities Reports and

response to inquiries.

Ongoing

Operating topics, envi-ronmental, social andcompliance manage-ment.

See Environmental Dimension, Social Strategy for the Trans-formation of Territories, Market and New Business Development, and Operations with Integrity, Reliability and Efficiency.

CommunitiesMeetings, letters, phone calls, brochures, information meetings.

Ongoing

Operating topics, asser-tive communications, development of projects that have an impact on the communities’ envi-ronmental, social and economic conditions.

See Environmental Dimension, Social Strategy for the Trans-formation of Territories, Market and New Business Development, and Operations with Integrity, Reliability and Efficiency.

SuppliersMeetings, visits, newsletters,website.

Ongoing

Operating topics, environmental manage-ment and compliance management.

See Environmental Dimension, Market and New Business Development, and Operations with Integrity, Reliability and Efficiency.




In line with the guidelines of Grupo Energía Bo-gotá, sustainability is materialized in our capacity to understand and manage the environment, to innovate and adapt our businesses to create prof-itability and generate benefits for the territories in which we operate, always with a long-term vision.

This commitment has enabled us to continue maturing our management of the most relevant topics for our business and for our stakeholders.

Our Sustainability Policy guides our actions and describes our specific commitments as a corporate group.

See our Sustainability Policy at: https://www.tgi.com.co/nosotros/gobierno-corpo-rativo/politicas

Stakeholders As part of our Sustainability Policy, we have taken on the challenge of continuously developing our capacity to un-derstand and manage our environment in order to benefit our stakeholders by offering innovative products, programs and services that meet their expectations.

(102-42) In 2017, we mapped out our relationships in order to identify the key actors for our activities, with the aim of establishing channels, frequencies and leaders for sharing information and clear topics of interest, to enable us to consolidate mutually beneficial relationships, to de-velop synergies and to address their requirements in an adequate and timely manner. This identification of stake-holders was carried out based on information provided by the different areas of the organization and who are in con-tact with the different actors on a day-to-day basis.

Understanding our environment enables us to mature our management and increase our social impact

(102-40) (102-43) (102-44) TGI stakeholders

Reviewing and updating the relevant topics for our company and our stakeholders is the first step to prioritize our sustainable strategic management. Material topics Descriptors Changes compared to the

2018 exercise

Corporate governance and ethics

• Effectiveness of governance bodies. • Corporate strategy management.• Corporate governance model.• Regulatory compliance.• Risk management.• Corporate policies and guidelines.• Management of the risks of fraud, corruption

and bribery.

We included the ethics topic in the description of the material topic.

Operations with Integrity, Reliability and Efficiency.

• Comprehensive asset management.• Operating efficiency.

We added complementary de-scriptors.

Environmental responsibility

• Wastes.• Noise.• Ecosystem protection.• Regulatory compliance.

None.

Climate change action

• Evaluation and assessment of climate change risks, impacts and opportunities for the busi-ness.

• GHG emissions management (including meth-ane leaks).

• Adaptation and resilience to climate change.

We separated the topic on cli-mate change as a new material topic with its respective descrip-tors.

Team with talent, motivation and results-oriented.

• Talent development.• Human Rights.• Employee well-being.

We separated the topic of occu-pational safety and health as a new material topic with its re-spective descriptors.Occupational Safety and Health

• OSH policies and management system.• Education and training for employees and

contractors.

Economic value generated• Economic performance.• Market presence.• Indirect economic impacts.

None.

Transformation of territories

• Creation of social value.• Community relations.• Social risk management.• Stakeholder relations model.

We included additional descriptors.

Market growth and development

• Service with quality.• Growth projects.• Regulations management (regulatory frame-work).• New market development.• Innovation and digital transformation.

We included the innovation and digital transformation descrip-tor.

Supplier development

• Local suppliers.• Extending good sustainability practices.• Supplier selection, monitoring and compre-

hensive assessment.• Promotion and respect for Human Rights.

None.

Step 1

Step 3

Step 4

Step 5

Step 2

Review of 2018 performance

Review of key internal inputs

Analysis and consolidation of the results

Validate and communicate the results

Review of 2018 performance

We reviewed the 2018 materiality results.

We reviewed TGI’s 2019 strategy and current strategic risks to continue linking materiality with key strategic elements.

The results were re-viewed by TGI’s Planning Department to make adjustments and fine tuning for the 2019 exercise.

Lastly, the results obtained were vali-dated by TGI’s senior management.

We reviewed the following external references:

Global standards and rankings that are important for the business such as GRI and DJSI for the gas industry.

Global benchmark companies in the energy and gas industry.

Results of GEB’s 2019 materiality exercise.



MaterialityDuring 2019, we reviewed and updated our mate-riality to align the key matters with Grupo Energía Bogotá, while prioritizing TGI’s own business im-pacts and risks.

This exercise was carried out taking into con-sideration the information obtained during the 2018 materiality analysis, which included conver-sations with stakeholders, the 2019 strategy and TGI’s strategic risks, key standards and bench-marks of the gas industry, and the results of the materiality exercise carried out by GEB in 2019.

For details on TGI’s 2018 materiality exercise, see the Sustainable Management Report at: https://www.tgi.com.co/operaciones/sostenibilidad

For details on the 2019 materiality exercise of GEB, see the 2019 Sustainability Report at:https://www.grupoenergiabogota.com/sostenibili-dad/informes-de-gestion-sostenible/geb

We carried out this exercise in accordance with the GRI guidelines and standards, with the follow-ing objectives:

• Review the sustainability risks, impacts and opportunities, to enable us to define targeted management and monitoring strategies.

• Align the relevant matters of GEB with the key topics for TGI.

• Review communications on key sustainability matters.

• Compare the key topics with the 2019 strategy and current strategic risks.

(102-47) (102-49) This process enabled us to make adjustments to our materiality, the results of which are presented below:

(102-46) Materiality review and updating process

Social strategy for the transformation of the territo-ries: Our shared value slogan

03

Social Dimension

46¯ Social strategy for the transformation of the territories56¯ Talent Management64¯ Vision Zero OSH

Protagonists of our social awarenessProtagonists of our social awareness

Open classroomswithout borders

J

1,700

Over 800

esús Alberto Cuadiyó, a ninth grade stu-dent, sinks his face into a mask that only leaves part of his hair visible. At the age of 14, he has never traveled beyond his birthplace, the municipality of Hatonuevo (La Guajira). But with this technology he is transported from the classroom to the ledge of a tall building in Bogotá. He takes a few steps and stops with a sense of vertigo as the world bursts open up under his feet. Five seconds later his next stop is one of the

pyramids in Egypt, and when he turns to one side he feels like he almost bumps into a group of tourists. He is not dreaming or hallucinating; this magic is possible thanks to a virtual reality headset.

Still overwhelmed, but excited, he narrates his sensa-tions: “This class will teach me a lot of things, like infor-mation technology, art and to be more creative with the subjects.” Jesús is accompanying executives from Grupo Energía Bogotá and Transportadora de Gas Internacio-

nal (TGI) to some of the finished classrooms at the Gua-machito Rural Ethnic Educational Institution, where tests are being run to promote education with innovation. The classrooms are not yet finished and are not yet in service. In 2020, attending classes will be a trip to a world without borders for close to 574 children and 20 teachers at the beneficiary school.

Not only through this experience, but also through a full range of options, including interactive desktops and tablets, video beams and an integrated sound system. The classrooms are powered by electric energy produced by solar panels that enable autonomous operation for 24 hours to make full use of the contents.

This is one of the six schools that began to be built in 2019 and will be handed over in 2020, when the children return from school holidays, as part of the "Energy to Learn" program, which is one of shared value creation pro-grams of the portfolio developed by Grupo Energía Bogotá in partnership with the National Education Ministry and TGI, one of its companies. The other interactive classrooms are being built at the schools Silvestre Francisco Dangond Daza (Villanueva, La Guajira), Rodolfo Castro Castro (two campuses in Valledupar, named Juan de Atuesta and San-ta Rosa), Benito Ramos (El Paso, Cesar) and Alto Cauca (Marsella, Risaralda).

Argelia Ipwana, who teaches art and culture in Wayunai-ki (the Wayuu language) at the Guamachito institute, made the following assessment: “With these information tech-nology rooms we will have an ideal tool available for the students. In my area, I will use videos to show the origin of the Wayuu, stories, legends and entertainment topics, which are so necessary. I thank those who support our in-digenous communities.”

The Interactive Solar Education project is expected to be expanded to schools in 11 departments in 2020. This initiative recognizes education as the driver for individual, family and collective development to increase life quality, fight poverty and inequality and to favor the social inclu-sion and progress of the communities promoted by GEB and TGI through their projects.

students will be taught at the first six interactive classrooms that began to be built in 2019. The target for 2020 is 3,800

interactive contents will be available in the virtual platform, both online and offline

The program’s scope includes strengthening local economies through creativity, knowledge and social innovation.

Thanks to a partnership between the Ministry of Education, Grupo Energía Bogotá and Transportadora de Gas Internacional, in 2019 construction began of classrooms with interactive tools at six rural schools, as part of the Energía para aprender (Energy to Learn) program. They will be launched in 2020, and program coverage will be expanded.


Social strategy for the transformation of the territories


Our Corporate Strategic Plan defines sustainabil-ity as the ability to know and manage the envi-ronment and implement innovative actions that enable adapting the businesses to the dynamics of the territories, in order to generate profitability and share our benefits with the territories in which we operate, with a long-term vision towards a sus-tainable future.

In line with this approach, in 2019 we estab-lished our new shared value strategy: the “So-cial strategy for the transformation of the terri-tories”, which aims to give new meaning to TGI’s actions under the principles of genuine relations with stakeholders and social awareness, develop-ing among all our employees and areas of opera-tions the awareness to understand and interpret the realities of the territories and to manage them.

(103-2) (103-3)How we manage it

The social strategy for the transformation of the territories is part of our Corporate Strategic Plan, and it materializes the shared value initiatives and programs, the development of capabilities for strengthening institutions in the areas of influence, the empowerment of women in the territories, access to good quality rural education, contributing to rural gas service initiatives and the development of engagement strategies with ethnic groups under the premise of respect and recognition of their traditions and customs.

The above is in line with our commitment to the respect and promotion of human rights and the global sustainable development agenda, in the framework of TGI’s Sustain-able Development Strategy and Sustainability Policy.

In 2019, the following monitoring mechanisms were established to assess the effectiveness of our social man-agement and shared value programs:

• Internal control audits• Monthly monitoring of the social management plan• Verification and monitoring of the improvement actions

suggested by the Comprehensive Management System• Feedback from stakeholders• The Petitions, Complaints, Claims and Requests System

(PQRS, for the original in Spanish)• Monthly monitoring of the transformation of

territories initiative

Additionally, we manage strategic relations through the Sustainable Development Committee, which meets every two months. In 2019 it addressed the following matters:A. Guidance for the implementation of the sustainable de-

velopment strategyB. Monitoring of reputation-related issues related to sus-

tainability, results of discussions with stakeholders and sustainability indicator performance

C. Assessment of environmental, energy and social per-formance through quarterly reports, and proposing any required action plans

D. Monitor compliance with the social relations manualE. Assess and advise on community relations cases relat-

ed to performance of the company’s activities

F. Monitor the socio-environmental and ener-gy management performance of suppliers and contractors

G. Recommend partnerships with entities to work on social and environmental matters in the framework of the sustainable develop-ment strategy

Genuine relations• (Own) In 2019, there were no reports of dis-

placement of populations in areas near our operations for reasons related to the business.

• (411-1) There were no reports or legal actions for violations of the rights of indigenous peoples.

• (413-1) Each of the 24 operations centers in the national territory was assessed in con-nection with socio-environmental risks and impacts with participation by local represen-tatives, and all have developed programs in the local communities.

• (413-2)(203-2) Based on the company’s risks and impacts matrix, in 2019 there were no re-ports of any critical or significant risks to com-munities in the area of influence.

• Genuine relations with communities implies ongoing engagement and dialog. In general, the topics discussed revolved around the so-cial investment projects in progress or under development, opportunities to hire local work-

We understand the importance of bringing economic development to the regions through actions of true social awareness that produce genuine, ongoing and transparent relations.

ers, and feedback on the priorities of the social investment programs.

• (Own) 16 complaints were received from communities in connection with contrac-tor management; 100% the complaints were addressed and resolved.

• (412-3) A total of 47 significant agree-ments were made with partner orga-nizations to strengthen shared value programs. 100% of the partners were assessed in accordance with the cor-porate policies and the Code of Ethics, including their commitment to respect the human rights of stakeholders.

Our constant engagement and dialog with the communities enables us to prioritize our social management


Social Dimension ¯

Programs and projects

Shared Value Projects Amount in COP Number of bene-ficiaries Municipalities

1.1. Access to biogas COP 52,452,000 300 students 1. Puerto Boyacá

1.2. Education for development 950 students

1. Hatonueno2. Villanueva3. Suratena

1.3. Support for micro and small enterprises COP 176,278,495 42 micro-enterpris-

es

1. Puente Nacional2. Jesús María3. Florián4. Miraflores

Total COP 228,730,495

(203-2) Bringing progress and well-be-ing to the communities in which we are present is one of our top priorities and part of our DNA. We do so by develop-ing projects that produce positive and permanent transformations in the terri-tories and generate economic growth for the communities.

Through the social investment pro-grams, the aim of the company’s Sustain-able Development Department is to gen-erate economic and social benefits for the communities, as well as to promote the following guidelines in the territories:

We engage in partnerships with other public and private parties to leverage our social impact.

COP 5,264 million

COP 128 million

was the total social investment in 2019. Equivalent to USD 1.6 million.

of our social investment was through the volunteer program.

(Own)

(Own)

1. Shared value actions2. A vision of transition to the future considering

long-term impacts3. Understanding sustainability as an element

that adds value to the business strategy4. Alignment with the strategic sustainable de-

velopment focus areas of GEB and its affiliates5. A systemic vision that enables an assessment

of the impacts and opportunities along the en-tire value chain

See the annexes for additional information of sig-nificant indirect economic impacts

We assist the most vulnerable areas with solar panels and electricity service programs

Infrastructure for competitiveness

We assist in the development of public areas that promote healthy lifestyles and well-being in the communities, as well as social cohesiveness and equality in the territories. Among our activities, aligned with the SDG to provide universal access to safe, inclusive and accessible, green and pub-lic spaces, we highlight the construction of bio-healthy parks, community meeting rooms and sports fields, with the following results:

• Beneficiaries: 17,276• Investment: COP 642 million• Projects: 11• Rural districts: 11• Municipalities: 7• Departments: 6: Boyacá, Santand-

er, Quindío, Caldas, Valle del Cauca and Meta.

1 |(203-1) (Own)


Social Dimension ¯

Local entrepreneurship

4.1 Agricultural strengthening:

4.2 Ethnic and rural female entre-preneurship

Access to biogas

Access to water, basic sanitation and sewage

Sustainable energy

In line with our focus on projects that increase the communities’ productivity and competitive-ness, we promote entrepreneurship and growth of the traditional activity of grazing minor live-stock to create income-generation opportunities and the consolidation of rural traditions with sheep and goat raising projects in the communi-ty of Murralein, of dual-purpose cattle ranching in Boyacá and Santander and the development of local suppliers.

We are committed champions in terms of promot-ing the participation of women in benefiting from entrepreneurship opportunities that will spiritu-ally and economically dignify them. In 2019, we benefited 22 Wayuu women, 22 community lead-ers and 50 women from rural areas in Paratebue-no and Villavicencio, who strengthened their skills and abilities in propositional leadership and the promotion of new creative and sustainable en-trepreneurship ventures. Wayuu and rural women have been identified and prioritized as drivers for dialogs and the social cohesion of their culture.

In view of the gaps in access to basic services in rural Colombia, we included in our SDG initiatives that of Ensuring access to affordable, reliable, sustainable and modern energy for all, through an environmentally and self-sustainable pilot project for the production and use of biogas in the rural district of Calderón.

We support the SDG to ensure access to and sustainable management of water and sani-tation for all, whereby Colombia has the mis-sion of providing clean and permanent water service to 3.6 million people who do not have running water at their homes. To this end, we assist in the corrective and preventive mainte-nance of windmills, and rural water and sew-age systems and networks.

We share the SDG premise of ensuring access to affordable, reliable, sustainable and modern energy for all, which we promote in the most vulnerable areas through solar panels and rural electricity service projects. In particular, we have had an impact of the Wayuu indigenous people in the north of La Guajira to close their social gaps, improve productivity, preserve their traditions and strengthen the hope of their families.

• Beneficiaries: 475• Investment: COP 397 million• Projects: 16• Rural districts: 16• Municipalities: 10• Departments: 6: Boyacá, Cundi-

namarca, Valle del Cauca, Quindío, Santander and La Guajira.

• Beneficiaries: 47• Investment: COP 117 million• Projects: 1• Rural districts: 5• Municipalities: 3• Departments: 3: Meta, Cundina-

marca and La Guajira.

• Beneficiaries: 300 students• Partner: Universidad Antonio Nariño• Investment: COP 52 million

• Beneficiaries: 3,309• Investment: COP 311 million• Projects: 7• Rural districts: 7• Municipalities: 7• Departments: 5: Santander,

Risaralda, Boyacá, Tolima and Valle del Cauca.

• Beneficiaries: 2,302• Investment: COP 194 million• Projects: 2• Rural districts: 2• Municipalities: 2• Departments: 2: Meta and La Guajira.

475 micro-enterprises and entrepreneurs benefited from agricultural strengthening programs

4 |

5 |

2 |

3 |


Social Dimension ¯

7.1 Support for micro and small enterprises:

7.2 Social leadership

7.3 Strengthening of job skills:

Our actions to strengthen education focused on five projects in seven municipalities and five departments

Education

Strengthening of production

We assist in improving the quality and relevance of education through construction, upgrades and equipment of educational facilities that of-fer safe, adequate, non-violent, inclusive and effective learning environments, with the fol-lowing impacts:

We promote the generation of a culture of entre-preneurship and job creation as a means to drive productivity and innovation in the neighboring ter-ritories to our operations.

• Beneficiaries: » 42 entrepreneurs and farmers of the pro-

gram to strengthen local entrepreneurs through best administrative, management, production and marketing practices.

» 17 micro-enterprises and two associations: Moraber, whose members are 25 blackberry growers, and Asogulupa, with 10 members; with programs to improve product quali-ty and strategies to consolidate and open new markets.

» Diversification of offerings, innovations in packaging and marketing.

We strengthen our role in engagement and so-cial development through the leadership pro-gram in nine municipalities in our area of social influence, in alignment of SDG 8 Decent work and economic growth.

The diversification of employment is a pressing need to enable the economic growth of people and regions. To this end, TGI promotes the devel-opment of profitable and sustainable business units through technical training processes to en-hance their productivity and competitiveness.

• Partners: Grupo Energía Bogotá – Ministry of Education, Municipal administrations

• Beneficiaries: 4,960 students• Investment: COP 305 million• Projects: 5• Rural districts: 7• Municipalities: 7• Departments: 5: Quindío, Valle

del Cauca, Santander, La Guajira and Risaralda.

• Beneficiaries: 87• Investment: COP 179 million• Projects: 4• Municipalities: 4• Departments: 2: Boyacá

and Santander

• Beneficiaries: 309 leaders trained• Investment: COP 117 million• Municipalities: 10• Departments: 3: Boyacá, Santander

and Meta

• Beneficiaries: 20 people• Investment: COP 92 million• Municipality: Paratebueno• Department: Cundinamarca

6 |

7 |


Social Dimension ¯

2020 CHALLENGES

• Arrange at least two major shared value initiatives related to the transformation of territories.

• Reach agreements on, perform and close 16 social liabilities.

• Position and strengthen community relations by means of:

» 3 corporate volunteer work events. » Mapping of actors at 100 municipalities priori-

tized by AID. » Arrange at least two major shared value initia-

tives related to the transformation of territories. » Carry out at least 20 workshops to strengthen

social leadership. » Carry out at least 20 workshops to strengthen

goods and services and the development of local suppliers.

» Carry out at least 20 workshops to strengthen the development of women in the territories.

We allocated COP 503,695,600 for strategic relations support, management and communications and social investment.

Risk Management

7.4 Corporate volunteer work

We promote the culture of prevention, training and equipment through the Awareness and Pre-paredness for Emergencies at the Local Level (APELL) program.

The employees join as volunteers who freely and selflessly offer their time, work and talent in favor of the common good of stakeholder groups within the territories of the areas of influence.

• Beneficiaries: 12,480• Family emergency kits delivered:

12,000• Municipal emergency kits deliv-

ered: 59• Investment: COP 2,350 million• Risk management drills: 800

• Beneficiaries:• 93 children in Riohacha, La Guajira• 43 children Coyaima, Tolima• 3,419 people in Buenaventura, Valle

del Cauca

8 |

Preventive Archeology

Through the Preventive Archeology program in the Coffee Triangle, digs were made at 37 archaeological sites, where 95 pre-Hispanic pottery pieces were recovered and are now on display at Museo del Quindío, in La Tebaida. They include 102 complete or fragmented pots, two gold work pieces and 15 human bone remains. Also, as a tribute to our archaeologists, we published the book Descubriendo 3.000 Años de Historia, Arqueología en el Gasoducto Loop Armenia.


Social Dimension ¯

Talent Management


Talent management at TGI is conceived as an enabling factor for our corporate objectives, because by developing our employees’ skills we are able to drive internal transformation, support knowl-edge management, retain the best talent and enable employee growth aimed at facilitating the development of new busi-nesses and progress at the company.

(102-7) We have a team of 447 em-ployees (see additional details on em-ployees in the annexes), all highly mo-tivated and focused on fulfilling the corporate strategic objectives, because we are aware that the people are the ones who contribute their potential to en-able the fulfillment of our organization’s strategy. We believe that each employ-ee’s performance depends on variables that can be strengthened through spe-cific actions, to ensure the productivity and effectiveness of their competencies through a solid corporate culture. For this reason, in 2019 the Talent Manage-

ment Department laid out objectives along six prioritized action lines that support the Corporate Strategic Plan to ensure excellent results in ful-filling the corporate objectives.

(103-2)(103-3) How we manage it

The formulation and management of the Cor-porate Strategic Plan is aligned with the Human Resources Management Policy of Grupo Energía Bogotá, which defines and provides guidance to all the affiliates on the measurement and moni-toring activities that must be carried out in order to assure fulfillment of the talent management goals, covering all employees.

Our talent management programs are developed based on six management action lines to enable us to achieve our corporate goals in a manner that is consistent with long-term sustainability.

Management action lines

Alignment of the Competencies and Values Model with the cultural attributes.

Recognition Program

Optimization of the corporate on-boarding process

Leader Development Plan

Meetings with the CEO

Communications plan

In our Talent Management Model, all processes must be articulated, and for this reason we define the behaviors, values and attributes that are required by the organiza-tion, and which are taken into consideration during selection and development processes.

A technological platform enables each employee to grant recognition to coworkers and teams based on cultural attributes, and to assign them points that can be traded in at a virtual store. Previously, this plan was individually managed, but starting in 2019 it was implemented at the corporate level, and all areas have access to it.

In order to ensure that our new employees receive a clear and close understanding of the company, periodic meetings with the CEO are scheduled. Guidelines have also been established to enable the direct super-visor of every new hire at TGI to steer the orientation through a path based on cultural attributes.

This initiative, aligned with GEB, was launched in 2018 and focuses on talent development for employees from man-agement level to technicians and field operators. This plan aims to highlight that all work roles are vitally important for our organizational goals.

Events aimed at building closer bonds and mobilizing the organization around matters of interest. Every semester, the CEO talks with employees about the strategic results, new projects and achievements, among other matters.

It is deployed among all employees with the purpose of unifying knowledge and attitudes towards the organizational culture and to implement the required cultural attributes. This enables achiev-ing the objectives not only through competencies, but also through the characteristics that make the company unique.

01

03

05

02

04

06


Social Dimension ¯

Education and Training

(404-1) (404-2) (404-3) Development, training and the creation of competencies were cross-cutting themes of all the plans and objectives of the Tal-ent Management Department. For this reason, the Leader Development Plan and the Recognition Plan were included in the management action lines.

(404-1) (Own) During the year, 17,408 hours of training were provided to 100% of our employees, or an average of 38.94 hours per employee. In turn, the Selection and Development Office sur-veyed the population in order to develop training offerings that are adjusted to each role’s needs and characteristics. See the annexes for addition-al information on training hours.Climate and Culture

In 2019 we managed to narrow the gap between the desired and actual corporate culture. This indicator decreased by five percentage points, whereas an average company achieves a two percentage-point reduction.

(404-3) 97% of employees were assessed* based on performance plans and predefined assessment scope parameters.

(Own) The Climate and Culture Office is responsible for reviewing the status of the organizational characteristics, determining any differences between the current and the desired corporate culture, and for implementing actions to close any gaps.

It also communicates the findings and measurement results to employees, in order to implement continuous improvement plans.

(402-2) To this end, activities were carried out in the framework of the six management action plans, including training through an e-learning platform, development of leadership plan contents, recognition criteria in the program of recognition of corporate values and culture, among others.

(404-2) Some training topics include cultural attributes, occupational safety and health, skills development and lead-ership, ethics and anti-corruption and corporate governance.

• Superior performance: Results ori-entation and achievement of big goals.

• Operating discipline: Strictly follow-ing procedures.

• Passion for care: Life comes first At TGI we focus on making sure that every-one understands that in our business and operations, life comes first. The re-lationships we build with our stakehold-ers are guided by this mandate.

• People: Development of a good work environment, with relationships based on harmony, teamwork and a sense of community.

Our employees received over 17,408 hours of training in 2019

Superior perfor-mance

We achieve extraordinary results.We work as a team to achieve

more ambitious goals.

Operating discipline Discipline is to follow the proce-

dures.We comply with the standards

and follow the procedures.

CareLife and integrity come

first, as well as our com-mitment to caring for the environment, our assets

and the communities.

People We are a committed team. Our

joint efforts make us great.

PASSION

Desirable corporate attributes

*Performance assessments are made for all those who joined the company on a permanent basis before June 30 each year. 100% of these employees are assessed.


Social Dimension ¯

(Own) This department also worked on activities to maintain a good work environment. According to the latest measurement made by TGI using the Great Place to Work methodology, the work environment score was above 80, which is a Very Satisfactory assessment level, with stable outlook.

(402-1) At TGI we offer employees a work sta-bility environment through mechanisms of par-ticipation and practices that increase the pride of belonging to the organization and make them feel special. To mention just one example, in the event of operating changes, we have established a minimum advance notice of 24 weeks in order for employees to adapt to the change and to adjust to the New Operations Model.

(401-1) During the year, 33 employees left the company and 56 new employees were hired. See the annexes for additional information. According to our data, our internal turnover rate is only 3% in terms of voluntary resignations.

Diversity and Gender

(Own) (405-1) (406-1) (202-2) We have increasingly focused on working on matters related to diversity, inclusion and gender. In 2019, we entered into an agreement with the UNPD equality pro-gram, and established action plans to be certified with the Equipares seal in the Silver category in 2010. We want women to be protagonists and to take on roles of responsibility based on the development of their talent and skills.

• (Own) 20 women were in manage-ment positions in 2019, equivalent to 35.71% of all senior and middle man-agement positions at TGI.

• There are now 8 more women in TGI management positions than in 2018 and 11 more than in 2017. We promote female talent.

• (405-2) Salary ranges are established by position and level or responsibility. (For additional information, see the Annexes.)

• (401-1) In 2019, we hired 28 women and 28 men

• (401-3) 17 employees, 5 women and 12 men, enjoyed parental leaves in 2019. See detailed information in the annexes.

• (406-1) During 2019, no discrimination cases were filed, which is significant given that we have operations in dif-ferent regions of the country with very diverse cultural, ethnic and gender characteristics.

• (202-2) Of the 56 management po-sitions at TGI, 49 are held by people originally from the regions in which we operate, which highlights the tal-ent and excellence of the regions and contributes to strengthening of the communities.

We promote female talent. Eleven more women hold management positions than in 2017. Also, like Andrea, other women are in technical positions

35.71%

49

of management positions at TGI (senior and middle management), we held by women in 2019

of the 56 management positions (88%) are held by people who are originally from the regions in which we operate

(202-2)

(Own)


Social Dimension ¯

CHALLENGES

• Align TGI’s culture to GEB's Version 2.0 culture.• Update the competencies model. • Define a succession plan for critical roles.• Increase the maturity of change in the Enter-

prise Change Management (ECM) indicator.• Continue the development programs for lead-

ers and company employees, in order to have competitive leaders who are capable of facing the corporate group's challenges, leverag-ing their skills, defining critical positions and succession plans in order to retain talent and achieve sustainability for the business.

Benefits (401-2)

The percentage of use of optional benefits by employees is 71%.

(102-41) Collective Agreement

In 2019, a five-year collective agreement was negotiated covering 317 employees, equivalent to 71% of all personnel, which provides benefits such as:• Severance indemnities above legal require-

ments for senior and specialist positions with over five years of seniority (which not only pro-vides greater stability, but avoids drastic chang-es in the teams due to changes in management).

• Soft loans for housing and education, increased coverage to benefit the children of employees who live in distant areas, life insurance, and paid days off on December 24 and 31.

• Additional eight-day leave for marriage and pa-rental leave, and an additional subsidy for the newborn. One additional day above the legal requirement for mourning leave.

• Enhanced perception of the attributes Passion for people, Sense of teamwork and Purpose of the field work role.

(102-7) (102-8) (202-1)

RESULTS

• At the end of 2019, the number of employees totaled 447.• Close to 9% of employees on the payroll are less than 30

and over 60 years old.• The highest percentage of employees is between the ages

of 41 and 50, accounting for 38% of the total, followed by those between the ages of 31 and 40, who account for 35%.

• 98% of our employees are hired on a permanent basis. The ratio between the minimum internal salary and the cur-rent minimum legal wage is 1.25 for both men and women.

• (Own) 40 employees are nearing retirement age (5 years). See the annexes for additional information.

• The new hire on-boarding process at TGI has three main stages that enable new employees to adapt to their roles and the company’s culture.The first is Corporate Orientation, 14 sessions of which were provided in 2019.The second is Hands-on Training, of which 7 were held last year.The third is a meeting with the CEO, called “TGI Connects You”, of which 3 sessions were held in 2019.

Employee benefits for full-time employees (non-

mandatory benefits)TGI

Are any of the following non-mandatory benefits provided to all full-time employees?

Life insurance Yes

Health insurance Yes

Accident insurance No

Health subsidies No

Marriage subsidy Yes

Meal subsidy Yes

Vacation bonus Yes

Flexible schedules Yes

Education subsidies No

Shares No

Other (specify) Extra-legal bonuses (June and December). Bonuses (for each year of service, for climate and for performance). Relocation subsidy. Availability subsidy.

Results-based bonus

Our greatest challenge is to promote leadership as a competitive value


Social Dimension ¯

Vision Zero, Occupational Safety and Health


Occupational Safety and Health (OSH) is a key pri-ority for TGI, and it has been incorporated in our corporate strategy and organizational culture as one of our three cultural attributes. It is managed in accordance with the guidelines of the Vision Zero program, created by our parent company GEB.

The program promotes self-care and the pre-vention of occupational diseases and accidents among employees and contractors as a means to ensure high levels of performance and best indus-try practices.

It also has an impact on the assessment and control of operating and maintenance risks, and is reflected in improvements in productivity aimed at fulfilling the 2025 goal of a culture of self-care, safe environments and zero serious accidents or deaths.


The main purpose of Occupational Safety and Health is to promote self-care and mitigate work-related accidents and diseases among employees and contractors, as a means to ensure a high level of performance through promotion, prevention and the Epidemiological Surveillance Systems, training in critical activities and educational programs.

OSH management has been broadened to include con-tractors, as strategic partners, providing them strengthen-ing, flexibility and adequate bases for the development of a sustainable culture.(403-1) It is led by senior management and implemented with the participation of employees and stakeholders.

It should also be noted that the OSH guidelinesare important bases for infrastructure design, develop-ment, operation and maintenance, aimed at ensuring safe and risk-free operation.An example of this is the Safe Infrastructure project, the purpose of which is to reduce exposure to the risk ofwork in confined spaces (403-2). It is based on the identi-fication of hazards, risk assessment and investigation of the incidents described in the guidelines of the Vision Zero Program. See the annexes for additional information on employee participation in occupational safety and health.

(403-4) Worker participation, consultation and communication on OSH

(103-3) Assessment mechanisms

• Internal audits by the Integrated Management System at the operat-ing and administrative facilities to verify fulfillment of the requirements of the ISO 9001, OHSAS 18001 and ISO 14001 standards.

• Internal audits by the Internal Au-dit Department to verify compliance with legal requirements and OSH performance by the company and its contractors.

• External compliance audits certified by Bureau Veritas.

• Quarterly monitoring of the Annual OSH Plan.

• Participation in Sustainable Develop-ment and OSH committees.

• Monthly presentation of indicators on employees and contractors (Lost Time Incident Frequency Index and Frequency and Severity Index, in ap-plication of the OSHA 300 standard), to the President's Committee and the Board of Directors.

• (403-4) The Copasst Committee, which oversees regulatory compli-ance, analyzes the causes of work-re-lated accidents and diseases and proposes corrective measures for preventing their recurrence.

• (403-4) The quarterly meetings of the Coexistence Committee focus on the prevention of labor harassment and protecting employees against psycho-social risks that affect health at the workplace. The Committee’s purpose is to improve the coexistence among all employees.

Assessment indicators

• Accident rate indicators such as the LTIFI in-dicator, which is aligned with the corporate strategy based on application of the OSHA 300 standard, which is used by companies to com-pare themselves against the industry. Other in-dicators include frequency, severity, absentee-ism, prevalence and incidence of occupational illnesses, which are used to guide actions for health promotion and care.

(403-2) TGI has a procedure in place to identify hazards, assess risks and establish controls, which is easily available to all employees and is communicated or discussed at least once a year, through training or retraining.

The assessment takes into consideration fac-tors such as the environment, work with com-munities and asset integrity, with the aim of im-plementing controls for the safety of the design and the infrastructure, preventing damages to the processes and injuries to people.

The output of this procedure is the hazard and risk matrix for each work center (districts, com-pression stations and administrative facilities), which is updated and disseminated whenever regulatory or internal changes are made. Based on current OSH legislation, in 2019, the risk as-sessment methodology was changed, using GTC 45 as guideline.

Contractor employees and workers have a mechanisms for reporting unsafe acts and con-ditions called the Observation and Assurance Card (TOA, for the original in Spanish). It is a tool to observe, report and record unsafe conditions and to make suggestions for improvement at the work centers (districts, gas compression stations and administrative facilities), with the purpose of preventing accidents.

We also have an incident management proce-dure which is easily available to all employees. Its purpose is to establish guidelines for report-ing, investigating and analyzing any incidents that arise at the workplaces. It covers all workers and

Our frequency index of lost time to work accidents in 2019 was 0.3.

9%

8

23

of employees participate in the various OSH committees

people participate in the Coexistence Committee (4 appointed by the employer (TGI) and 4 by the workers)

watchmen and 8 employees are members of the Joint Committee on Safety and Health at Work (COPASST, by its acronym in Spanish) (4 appointed by the employer (TGI) and 4 by the workers)


Social Dimension ¯

is available at the company’s facilities. Once the incidents are assessed in ac-cordance with the risks and hazards ma-trix, corrective or prevention actions are undertaken to eliminate the root causes of the incident.

(403-3) (403-6) The company also has a preventive and occupational medicine program that carries out activities to promote and control employee health, to ensure optimal conditions of physi-cal, mental and social well-being, and to protect them from occupational risk factors, adjusting workstations that are suitable for their psycho-physical condi-tions and maintaining them in fit condi-tions to work. Monitoring is performed by

means of medical check-ups made upon joining the company, periodically and when they retire, taking into consideration their profiles and the company’s job profile chart. Several other entities participate in the program, including healthcare providers (EPS, for the original in Spanish), health insurers, prepaid medicine plans, occupational risk insurers (ARL, for the original in Spanish), the health promotion program and an agreement with the medical and fitness center Bodytech.

RESULTS

• In 2019, we strengthened our management of contractor companies, by means of visible leadership and participation through interven-tions, visits, meetings, monitoring and audits, jointly with the companies’ leaders and contract supervisors.

• During the year there were no major acci-dents nor reportable accidents with disabilities among employees. Only 6 reportable accidents with disabilities were reported by contractors.

• (Own) The work accident severity index among employees was 13.3 with 12 days of absence; whereas the accident severity index of contrac-tors was 17.5 with 84 days of work absences. See the annexes for additional information.

• (Own) Zero deaths in 2019. See the annexes for additional information.

• There were no reports of occupational illnesses diagnosed by the occupational risk insurer (ARL).

• Design and implementation of the action plans based on the findings of the audits of the opera-tions and administrative work centers.

• The Internal Audit Department audited a sam-ple of 9 contractor companies of core business processes and closed the reported findings.

• In 2019, upgrades were made to 37 additional facilities, to mitigate risks of work at heights and in confined spaces, for the safety of our field personnel, for a total of 53 upgraded fa-cilities between 2018 and 2019. We will cover 268 facilities by 2025, to fulfill the goal of zero critical infrastructure facilities.

• (403-5) One of the most important results in 2019 was the 50-hour online course on the Occupational Safety and Health Management System (MS-OSH) taken by 97% of TGI’s direct employees.

• (403-5) Certified training for 90% of employees who perform high-risk activities such as work at heights and in confined spaces.

• (403-5) Training of 100% of contract supervi-sors to strengthen their OSH competencies.

• (403-8) 100% of employees covered by the OSH Management System, including worksta-tions subject to internal audits and third-party verification.

• (EU17) 900,223 hours worked by TGI employees in 2019, with zero deaths. See the annexes for additional information on the indicators.

• 100% of workers participated in vaccination campaigns and occupational health checkups.

In the last five years we have had zero (0) deaths at TGI and its contractors.

• Health Week activities focused on high-risk jobs, emergency brigades, road safety, healthy habits and risk assessment.

• Noise levels were measured at 100% of gas compression stations.

• The psychosocial risk battery of tests was ap-plied to 88% of direct employees.

• 100% completion of the evacuation drills scheduled at the 23 operating work centers and the administrative facilities.

• Closing of over 50% of internal audit findings on the Road Safety Strategic Plan (PESV, for the original in Spanish) and characterization or road accidents with and without injuries to people, in order to plan interventions and prevent fatal and serious accidents.

• Intervention of cardiovascular, epidemiological and musculoskeletal risks by a physician, a nu-tritionist and a physical therapist.

• Strengthening of contractor company man-agement through interventions, visits, meet-ings, monitoring and audits.

CHALLENGES

• Implement the cultural transformation program (Vision Zero – Life Comes First), under group guidelines, with the target of zero fatal or seri-ous accidents among employees and contrac-tors from 2020 to 2022.

• Improve and maintain the programs to prevent work-related accidents and diseases involving the contractors.

• Implementation of actions to intervene in psy-chosocial risks, noise mitigation and epidemi-ological surveillance, based on 2019 measure-ments.

• Structure the map of intervention of the organi-zation’s confined spaces.

Caring for oneself and the team is part of our employees’ culture


Social Dimension ¯

We preserve the ecosystems, we value, care for and manage biodiversity

04


72¯ Biodiversity Management 74¯ Climate Strategy77¯ Noise


Live life

E 400

80%

very time Riquelme Palacio begins to work, everybody holds their breath. He is a welder, and he is preparing to make two welds to join three pipes, each of 30-inch diameter and 12 meters long. He does so with the precision of a surgeon, assisted by a team in Puerto Boyacá (Boyacá). The precise synchronization of the machines and men makes the job look easy. Then, at last, Riquelme puts out the blow torch and leaves the area. This task summa-

rizes the policy of Life Comes First, which is a commitment between TGI and its contractors during operations.

“The risks associated with my job in this project are land-slides, because of the excavations made to lay the connec-tions between 1.50 and 1.80 meters deep,” he explains. A few meters above him, Germán Pérez, a pipe-lifting side

boom operator, summarizes his risks: “I advise my cowork-ers not to step in front of the heist when the load is lifted.” Humberto Cerón, an older supervisor, points to the mud under his boots. “The rain has made the terrain very slip-pery.” And Albergol Moreno, an OSH professional contrac-tor, points out additional hazards, such as the risk that ma-chinery in movement may run over someone or topple over.

They all work on the 22.2-kilometer Puerto Rome-ro-Vasconia Loop, which was handed over in December 2019 and is part of the Cusiana Phase IV project. A sub-stantial part of TGI’s activities focused in this area in 2019.

“The target of zero deaths in all projects was achieved thanks to good synergies between TGI’s Projects, Opera-tions and Maintenance areas, the Sustainable Development Department and the contractors,” said Fernando Badillo, the Occupational Safety and Health professional who su-pervised the work in Puerto Boyacá.

Ángela Rodríguez, TGI’s Sustainable Development Man-ager, believes the strategy is necessary: “We are commit-ted to caring for the life of our employees, suppliers and communities. We are also responsible for the preservation of the environment and natural resources.”

Riquelme, one of several welders, is thankful that his company values life, and he is a true believer of safety based on behavior: “Thanks to this, I have never had a work acci-dent. After a day of hard work, the best satisfaction is to get home safe and sound, and to be hugged by those who expect us to come back the same way we left in the morning.”

epiphytes were rescued from the rights of way of the Puerto Romero-Vasconia Loop

of contract supervisors received training on occupational safety and health legal requirements

At all geotechnics works and special crossings there are OSH professionals on site, as well as specialized medical units to assist and transport primary emergencies.

The talent of TGI’s employees and contractors lies behind the networks and gas pipelines. Our Life Comes First cultural attribute forms part of every operation, as reflected in the Puerto-Romero Vasconia Loop, one of our strategic projects.

Protagonists of our environmental awareness


Biodiversity Management

Why is this topic important?(103-1) At TGI we acknowledge the impor-tance of managing and caring for biodi-versity, taking into consideration that our gas transportation pipelines cover much of the country and that we operate in ar-eas with highly valuable ecosystems.

We frame our ecosystem manage-ment in compliance with environmental legislation and our aim is to minimize our impact and to coordinate activities with key stakeholders in the territory to care for the environment.

Additionally, our corporate goals aim at going beyond minimum legal require-ments in order to preserve the country’s different ecosystems.

How we manage it

(103-2) Our biodiversity actions focus on recognizing the impact of our activities based on identifying and monitoring of the types of forests and the length of the protected areas through which our infra-structure passes by and their attributes of value, or wealth of flora and fauna, in order to take inven-tories of species, undertake offsetting programs or projects to preserve the natural resources.

To this end, we work through strategic partner-ships, with partners involved in the preservation, restoration and rehabilitation of ecosystems that are highly valuable for biodiversity.

(103-3) We assure effectiveness by complying with Colombian regulations, and we enter into agreements based on voluntary contributions.

RESULTS

• Study of the fauna and flora of the neighboring areas to our gas compression station at Hatonuevo, La Guajira, where it was established that the quality of the dry trop-ical forest habitat has not deteriorated. This process also enabled us to provide training to our neighboring community in the Wayuu indigenous reservation Loma-mato, Guamachito, on the wealth of the fauna and flora in the area. Community members actively participat-ed, especially children, who displayed much interest in learning about the wealth of plants and animals in their territory, and who were particularly curious about why the “non-Wayuu” (biologists) had such knowledge.

• Planning of the corporate activities required to make a balance of pending environmental offsetting require-ments pursuant to law.

• Identification of the impacts on biodiversity produced by the operation and definition of a plan to quantify them and submit a budget for a work plan jointly with the re-gional environmental authorities.

• Support for Corpoboyacá, Miraflores regional office, for the preservation of native species of the strategic eco-system Macizo de Mamapacha y Bijagua; to this end, a nursery will be established to plant Canelo, Ceibo, Oco-bo, Macana Palm and Wax Palm; and 15,000 trees will be planted in a territory covering the municipalities of Rondón, Zetaquirá Miraflores, San Eduardo and Berbeo, which are influenced by the strategic ecosystem.

• Carry out a pilot program with Corpoboyacá to raise community awareness on the need to stop using plants from the páramo ecosystem and to plant native species in five municipalities in the areas of influence. The fo-cus of this project is on the environmental education of communities in favor of preservation.

• (304-1) Monitoring and management to restore the diver-sity of fauna and flora at 15 points of our operation near highly valuable areas for biodiversity.

• Enter into an agreement with the environmental authority of Santander to support the BanCO2 initiative, which pays the owners of strategic properties to work on the preser-vation and recovery of deforested areas. This agreement benefits 23 families in the thick lower Andean rain forest ecosystem in Santander, who are in the intervened areas and who work on enabling natural regeneration.

CHALLENGES

• Monitor fauna and flora in ecosystems impacted by our operation, compare ef-fects over time and define action plans.

• Recovery of impacted areas through re-forestation contracts entered into jointly with the community.

• Carry out action plans to promote biodi-versity that go beyond legal requirements.

• Consolidate our agreement with Institu-to Alexander Von Humboldt to support phase II of the Biocontrol Panel and participate in the benefits of the entity’s products and official information.

• Replicate the achievements of the gas compression station at Hatonuevo re-garding fauna and flora monitoring, with emphasis on infrastructure that is near strategic ecosystems recognized by the regional environmental authorities, to identify threats and establish protection and preservation programs.

We seek to offset our environmental impacts beyond legal requirements.

In 2019, we monitored and managed ecosystem wealth at fifteen points of our operations


Environmental Dimension ¯

Climate Strategy

Why is this topic important?

(103-1) (103-2) Global efforts to evolve to-wards a low-carbon economy in order to mitigate climate change have led to an increase in forecast gas consumption as a clean fuel that is suitable for the transi-tion period from hydrocarbons and fuels to renewable energies.

This challenges us to promote the use of gas and to strengthen our leadership as part of the low-emissions generation chain.

We must also maintain our premise of working on mitigating, offsetting and adapting to climate change, which we have approached by measuring our car-bon footprint, mitigating infrastructure leaks, increasing energy efficiency and offsetting our CO2 emissions.

How we manage it

(103-3) The emissions produced by the company are audited in accordance with the technical standards on Environmen-tal Management Systems ISO 14001:2015 and Energy Management Systems ISO 50001:2019, whereas greenhouse gas emissions in performance of activities are verified by a third party.

In order to manage these impacts, our corporate strategic planning includes a target of offsetting 35% of direct emis-sions covered by scope 1 (flare gas, pilot gas, fuel gas and contingencies).

The evolution of the above indicators is reported to the Board of Directors on a monthly basis.

RESULTS

Carbon footprint management• Icontec certified that the inventory of our 2018

greenhouse gas emissions under Scopes 1, 2 and 3 fulfilled the requirements of the GHG Protocol and the NTC-ISO 14064-1:2006 stan-dard. The carbon footprint result for 2018 was 140,452.88 t CO2e. The following is the break-down of the above total:

Scope 1 operating emissions• Flare gas (65,142.09 t CO2e)• Pilot and fuel gas (9,858.47 t CO2e)• Contingencies (39,210.47 t CO2e). • Total operating emissions: 114,211 t CO2e

The company calculates monthly emissions in tons of CO2e per each million cubic feet of natural gas transported. In 2018, the average indicator was 0.46 and in 2019 it was 0.61

Direct and indirect emissions (t CO2e) 2018-2019

This indicator enables monitoring the most sig-nificant emissions produced by the operation of the gas compression stations, which are direct-ly related to the volume of gas transported and the number of engines in use. The 2019 total was 106,976 tons of CO2 equivalent, generated by the fuel gas required for compression and the gas burned by flares and pilots, and a total of 173,857 MMCFD of gas was transported.

Fugitive emissions Methane emissions caused by gas pipeline break-age is another significant source for the com-pany’s carbon footprint. The number of pipeline breaks decreased from 16 to 6, while CO2 emis-

Direct and indirect emissions (Ton CO2e)

2018 2019

Scope 1 emissions 139,925.4 157,440

Scope 2 emissions 317.1 512.3

Scope 3 emissions 210.4 226

Total emissions Scopes 1, 2 and 3 140,452.9 158,178.3

(305-1) (305-2) (305-3) Control over our infrastructure emissions was one of our

achievements in 2019

.

sions decreased from 40,959 tons of CO2e to 5,994 tons of CO2, i.e., an 85% reduction.In October 2019, we launched a campaign to identify and quantify emissions from natural gas transportation infrastructure equipment or components, in order to es-tablish a baseline and an intervention plan for the operations.

As a result, 100% of the infrastructure at the Ballena dehydration station and the Padua gas compression station was mea-sured, and an action plan was implement-ed at these stations to repair all sources or components such as valves, flanges and other connections, pressure relief pumps and compressors, open line ends and seals of shakers and gates, following the stan-dard of reference US EPA Method 21.



Noise


(103-1)(103-2) In line with our purpose of adequately managing our organization’s impacts and ensuring legal compliance, we identify and quantify environmental noise levels in order to minimize its ef-fect on the employees at our operation centers and on the residents of neighbor-ing communities.

How we manage it

(103-3) We perform a diagnosis of sound pressure levels in the operations, and we classify and prioritize mitigation mea-sures at centers where we have received complaints or legal petitions from the communities or local authorities regard-ing noise.

Based on the mitigation prioritization parameters, we develop a joint manage-ment plan led by the Sustainable Devel-opment Department and performed by the Construction Department.

RESULTS

• Diagnosis of the company’s noise mitigation priorities, after hav-ing measured 100% of the stations in accordance with regula-tory parameters.

• (Own) 100% of our facilities comply with environmental regu-lations in terms of daytime noise, while 75% comply with the parameters for nighttime noise. For this reason, we have set the challenge of achieving 100% compliance with both parameters by 2024.

• Implementation of the noise mitigation priorities based on the characterization of environmental impacts, implementation of offsetting pilot programs and community relations actions. Four stations have been identified as having the top priority.

• Prioritize and execute the soundproofing project at the Padua compression station, with an estimated investment of COP 5,521 million in 2020, which will be equipped with an acoustic noise barrier in rock wool that will enable exceeding environmental mitigation requirements and harmonize relations with the com-munity affected by noise pressure.

• Plan and define a technological solution to measure and mit-igate noise, with advisory from the Center for Innovation and Technological Development of the Electricity Sector (CIDET, for the original in Spanish), which will enable us to standardize an effective soundproofing methodology for use at other operating centers of the organization. In this process, over 100 technolog-ical options were screened from references worldwide, and the one that was most effective for TGI’s operations was selected.

CHALLENGES

• Continue to close the gaps found in the noise mitigation plan in 2020, which has been approved by the Board of Directors.

• Define long-term goals for managing and offsetting this matter.• Define alternative actions to offsetting noise effects on the

neighboring communities to our operation, to which end a spe-cialized firm was contracted.

• Quantify and report in 2020 the level of compliance with the day-time and nighttime noise regulatory parameters and establish an action plan to achieve 100% compliance with both parameters by 2024.

CHALLENGES

• Implement campaigns to identify and quantify fugitive emissions throughout our infrastruc-ture.

• Demonstrate energy savings in 2020 mea-surements through the implementation of en-ergy-saving equipment to reduce greenhouse gas emissions.

• Continue the plan to offset our carbon footprint.

Managing noise is a priority in order to ensure good community relations and to protect our employees’ health and safety.We monitor fauna and flora at impacted

strategic ecosystems

Energy Efficiency • Replacement of 1,184 traditional light bulbs for

efficient LED technology, achieving a 75% re-duction in energy; and of 118 air conditioners for units equipped with inverter technology, which consume up to 50% less energy.

Offsetting • Acquisition of 42,000 carbon bonds in the Car-

vida Duratex S. A. project, of the offsetting pro-gram in Antioquia, Tolima, Caldas and Santand-er, with an area of 5,859 hectares in forestry plantations and 855 hectares of natural forests. The project has been certified under the offset-ting program certification protocol, with certifi-cate number COM-CER-18-001.



05

Economic dimension

82¯ Superior performance and profitability85¯ Market and new business development90¯ Proactive regulatory management,

innovation and quality service92¯ Growth Projects100¯ Operations with integrity, Reliability

and Efficiency 103¯ Digital Transformation105¯ Contractor Development


Innovation, on the blackboard

O

1,70090

n the cement floor in the central court of the school El Prado, four circles enclose a short but powerful phrase: "I recycle." This school in the Calderón rural district, at 25 kilome-ters from Puerto Boyacá, has 300 primary and secondary students, and an additional 535 students attend the other five campus-es. Its marching band is a great source of pride. But in 2019 a new project took off that

has the students talking in the hallways.The new challenge is to “Produce biogas and organic

fertilizers in rural areas using a biodigester connected to a photobioreactor, to add value to wastewater.” In simple terms, the project consists in installing a prototype device at the school to turn wastewater into biogas. Once the three phases are implemented and the end results are sta-

bilized, the project will be extended to the rest of the rural district. The students in the tenth and eleventh grades will monitor the project.

This rural district was selected because it has no gas available for household use. This project offers the alter-native of obtaining clean energy while reducing environ-mental problems. Liquid wastes have an impact on the environment and they represent an unresolved problem that generates vectors and other risks for the community.

“We hope the prototype will help us solve this problem at the community and that it can be replicated in other ar-eas. I have estimated that about 60% of the population of Calderón uses gas tanks, and 40% uses wood”, explains Nelson Enrique Fonseca, who has been a teacher at the school for five years and is the coexistence coordinator.

A team of young researchers with doctoral training from Universidad Antonio Nariño is behind this project and in favor of working with the community. In this manner, TGI is aligned with the fourth Sustainable Development Goal, which aims to “ensure inclusive and equitable quality edu-cation and promote lifelong learning opportunities for all.”

is the population of Calderón, where the average temperature is 31 degrees Celsius

students in the tenth and eleventh grades will lead this project and will work on the three planned phases

The main uses for biogas are for the generation of thermal electric energy, to inject it into the natural gas network, or for use as vehicle fuel.

At a school in the Calderón rural district of Puerto Boyacá, a pilot project seeks to produce biogas from wastewater. This is an example of how the sustainability policy of GEB and TGI contributes to technical academic research to the benefit of the territories.



Superior Performance and Profitability

Why is this topic import-ant?

(103-1) Our economic value management is a key and permanent component of our strategy. We make key contributions to corporate sustainability through actions aimed at economic soundness by means of revenue monitoring and assurance, discipline in the use of capital, financial efficiency, backing for operations and the development of new businesses.

How we manage it

• We adequately monitor and control the corporate budget, to ensure dis-cipline in spending and adequate li-quidity to ensure performance of the company’s expansion projects and the fulfillment of its obligations.

• We continuously monitor and manage the company’s financial indicators to ensure regulatory compliance and an adequate capital structure, in or-der to maintain our investment grade credit rating.

• We manage the risks associated with the operation through an insurance program that covers and protects the assets, personnel and properties over which we are legally responsible.

• We maintain adequate communica-tions with our investors through our website, quarterly results confer-ence calls, and reports to regulators, among others.

RESULTS

Economic value generated

(201-1) RevenuesOperating revenues grew by 6.1% to USD 468.8 million, mainly as a result of higher prices, greater volumes transported and a reduction in suspen-sions for fixed charges. The latter is also associat-ed with the corporate commitment of maintaining the system’s availability.

Financial revenues increased by 56.1% from USD 2.65 million in 2018 to USD 4.15 million in 2019.

EBITDAEBITDA growth of 9.6% and strong cash flow en-abled us to fulfill our obligations with suppliers and creditors, including repayment of a syndicat-ed loan in August 2019. EBITDA increased from USD 329.0 million in 2018 to USD 360.4 million in 2019.

Explanatory notes • In 2019, a new item was included for

the dividend distribution to share-holders.

• Interest payments include all fi-nancial expenses, excluding equity method expenses.

Economic value distributed 316,814

Operating costs (property leases, license fees, royalties, contractor payments, among others)

60,679

Salaries and employee benefits (salaries, pension contributions, insurance, indemnities, payroll taxes, among others)

25,959

Dividends to shareholders (profit distribution proposal) 90,000

Interest payments 69,609

Payments to governments, by country (taxes, fines, penalties, permits, among others)

68,967

Investments in communities 1,600

(201-1) Economic value distributed• Operating costs remained stable compared to

2018.• Payroll expenses associated with salaries and

other benefits increased slightly compared to the previous year.

• A dividend payment to our shareholders was declared for a total of USD 90 million.

• Compared to 2018, taxes and government-re-lated payments increased by 55.0%, mainly due to a greater income tax provision in 2019 com-pared to 2018.

2015 2016 2017 2018 2019

355.1 323.9 329.0 360.4

Operating profits

USD 248.8 million - 2018USD 269.4 million - 20198.3% change

Net profit

USD 136.0 million - 2018USD 125.9 million - 2019-7.4%

Our ongoing economic sustainability goals are to maximize financial efficiency and drive profitable growth.

Economic value retained totaled USD 156,157,221, up 17.3% compared to 2018.

Amounts in millions of dollars


(103-2) (103-3)

(102-7)

361.1


Economic Dimension ¯

Other relevant performance results• Repayment of USD 40 million of total financial debt with

company resources, in fulfillment of the credit terms. In-terest payments decreased by 22.36%.

• The leverage ratio of total debt/EBITDA improved from 3.56 times in 2018 to 3.15 in 2019, leaving us in a more comfortable position in terms of our indebtedness ratios.

• We maintained our investment grade credit ratings at Baa3 stable from Moody’s, BBB stable from Fitch Ratings and BBB- stable from Standard and Poor’s.

• Implementation of the CGA information system, which automatically integrates invoicing to customers, provid-ing operating efficiencies.

• Adoption of the international financial reporting stan-dard on leases, IFRS 16, in compliance with regulatory requirements.

Fulfillment of our business agreements represents financial stability for TGI

CHALLENGES • Ensure that the budgeted rev-

enues for 2020 are achieved taking into consideration the start-up of Cusiana Phase IV.

• Continue to support the devel-opment of strategic projects to ensure new revenues, either by UPME decisions or at the com-pany’s own risk.

• Maintain operating efficiency in terms of costs and expenses.

Market and New Business De-velopment


We seek to develop new markets and businesses that connect supply and de-mand through our infrastructure, in our capacity of industry leaders who pro-mote the development of initiatives to substitute other fuels for natural gas, positively influencing regulations that ensure and increase supplies with high quality of service in the regions in which we operate, and designing energy-ef-ficient and sustainable solutions that contribute to reducing greenhouse gas emissions and improve the quality of the air we breathe.

These objectives require us to re-main one step ahead in developing activ-ities that address the needs of an ever more competitive environment, in which we aim to remain, grow and satisfy our customers and achieve our purpose of positioning natural gas as the preferred energy source.


To this end, we promote and facilitate gas con-sumption; we aim to position ourselves as stra-tegic partners in the energy value chain. In or-der to drive the market, we advocate a modern and flexible regulatory agenda and we promote studying and developing alternative projects and businesses of more efficient energy sources, al-ways aiming to provide a reliable and high-quality service that enables us to develop long-term re-lationships of value.

The area responsible for these efforts is the Business Development Department, which takes the lead in matters related to competitive strate-gy, new businesses, customer service and regula-tory management.• We manage the risks associated with the op-

eration through an insurance program that covers and protects the assets, personnel and properties over which we are legally respon-sible.

• We maintain adequate communications with our investors through our website, quarterly results conference calls, and reports to regu-lators, among others.

Our vision of the future is the basis for our efforts to grow in current markets and those with future potential. We achieve this through innovation, information management and knowledge.



(Own) In terms of customer satisfaction, out of 88 effective surveys, 79% of surveyed customers said the service fulfills their expectations and 6% said the service quality is above expectations.

Customer typeNumber of cus-tomers

Distributor 21

Commercializa-tion 15

VNG 4

Industrial 3

Thermal 2

Total 45

RESULTS

Promotion of natural gas consumption

• We took action to manage our role as integrator, facilitator and promoter of the increased use of natural gas, by working jointly with producers, distributors, technology providers and end users.

• We identify and structure future alternatives to achieve sustainable long-term revenues from the Ballena – Barranca infrastructure.

• (Own) We surpassed the goal of additional vol-ume and market development, which was set at 18 MMCFD, against an actual 21.8 MMCFD, which ensures clean air and productivity for Colombia.

• (Own) Total incremental demand incorporated by the industrial line totaled 15.1 MMCFD.

• (Own) Total incremental demand incorporated by the cities and gas mobility line totaled 6.7 MMCFD.

• (Own) We incorporated 23 companies that ac-quired fleets powered by Vehicle Natural Gas (VNG) in 2019 for solid waste collection, trans-portation of food products, logistics, passen-ger transportation and cement manufacturing, among others.

• Of the 6.5 additional MMCFD incorporated in cities and mobility, 4.8 MMCFD were from the incorporation of 306 VNG-powered cargo vehi-cles, plus the awarding of 534 VNG units (reg-istered) for the Bogotá mass transport system (SITP), for a total of 840 units.

• (Own) The other additional 1.7 MMCFD in mo-bility are the result of the installation of kits to convert vehicles from gasoline to VNG.

• We identified 265 transportation companies with opportunities to incorporate gas-powered vehicles in their fleets, which we expect to de-velop over the next three years.

• We have identified and located potential con-sumption of 70 MMCFD in projects to substi-tute coal, auto and co-generation and cofiring (simultaneous combustion of bagasse and nat-ural gas).

• We have identified pilot plans to increase de-mand for gas in household and commercial ar-eas, working jointly with distributors throughout the country.

• At all levels, we promote flexible and favorable regulations for the use of VNG.

(102-6) (Own) Types of customers

Business structuring• We have identified the natural gas

sources and resources, which we use as input information to plan the expansion of gas transportation and midstream services.

• We carried out a study on potential markets, based on which it was rec-ommended that we obtain a better understanding of liquefaction in order to develop the LNG market at a small scale in Colombia, to explore opportu-nities for strategic gas storage, and to explore initiatives for gas processing and treatment to complement the cur-rent infrastructure.

• We referenced and structured a trans-portation project using virtual gas pipelines that may be highly viable, as they facilitate shipping the gas with-out having to build large gas pipelines, reducing the environmental impact compared to building traditional infra-structure, while facilitating transporta-tion to areas of the country that are not connected to the network.

• We carried out a detailed study of Lat-in American countries and Colombia to determine new investment opportuni-ties in the region, as well as opportu-nities for organic and inorganic growth.

• (Own) Our market share increased by 7 percentage points from 47% in 2018 to 54% in 2019.

Service with quality• (Own) We received a service quality

score of 8.2 over 10, which is in the ex-cellent range and higher than the pre-vious measurement reported in 2018, which was 8.1. Additionally, our reputa-tion score increased substantially from 63% (8.1) in 2018 to 75% (8.4) in 2019.

(418-1) In 2019, TGI did not receive any substantiated complaints in connection with breaches to the privacy of customer information

TGI Perception of quality

Year 2016 2017 2018 2019

Perception of quality 8.1 8.4 8.1 8.2

Percentage of users assessed (No. of surveys/No. people contacted)

68.35% 52.38% 41.25% 81.48%

(Own) The above is consistent with their percep-tion of service quality. The survey indicated that service is perceived as excellent, with a score of 8.2 over 10. The average score between 2016 and 2019 has remained at 8.2.

2018 2019

Would you say that your relationship with TGI…

2% 2%

84% 84%

12% 12%

Exceeds your expectations

Fulfills your expectations

Is below your expectations

Source: CNC - Customer relations assessment.

Total base of respondents: 99 Total base of respondents: 44



(Own) Regulatory Management

• We performed international benchmarking with trans-portation infrastructure remuneration models, conclud-ing that it is viable to recommend the adoption of the entry-exit methodology as the best way to develop the gas market in Colombia. The same study concluded that the section Ballena – Barranca could be considered a reliability asset, due to its importance in connecting the inland and coastal systems.

• We received and completed a technical assessment by CREG of 70 assets, to move forward in the Regulatory Useful Life process.

• We updated the information in the rate file as of June 2019, which enables the company to better prepare for the future rate methodology to be issued by CREG in 2020.

• Proposals were made to the various documents or ad-ministrative acts published by the regulatory body, such as the proposal for commercialization of transportation capacity (CREG Res. 082/2019), which aims to make the proposal more dynamic to benefit the senders of trans-port capacity. Proposals were also made on the calcula-tion of WACC (weighted average cost of capital), in order to adequately remunerate the risks gas transportation agents are exposed to in Colombia.

• We explored possible scenarios for new rules on verti-cal integration in order to increase fairness in industry regulations, and particularly those that affect the gas transportation business.

• A proposal was submitted to the policy and regulato-ry bodies to enable thermal power generation plants to have access to the regasification plant of the Pacific

and thereby reduce the payments to be made by the users who benefit from this infrastruc-ture, with its corresponding advantages for the electricity industry and a recovery in natural gas demand by the thermal sector.

• Jointly with the Naturgas industry association, we provided support for issuing a bill to pro-mote natural gas as an energy source for vehi-cles, which has passed the first debate in the Chamber of Representatives and continues in the legislative process.

• We also promoted the inclusion in the agenda of the Andesco Congress of an industry expert to share his experience with different sectors on the complementarity of generation using both Non-Conventional Energy Sources (FNC-ER, for the original in Spanish) and natural gas in the world, and particularly in the Brazilian market. This presentation was also made at the Ministry, accompanied by the members of Focus 2 of the Energy Transformation Mission.

CHALLENGES

Promote consumption• Structure a product portfolio for the industrial sector to

enable us to increase consumption and substitute other fuels for natural gas.

• Develop the market with 265 companies in which oppor-tunities were found to increase the number of gas-pow-ered vehicles in their fleets.

• Create the technical, regulatory, operational and com-mercial conditions to make full use of the 70 MMCFD identified as an opportunity for consumption by industry through the implementation of substitution projects.

• Create pilot projects in the short term to assess, make viable and implement in the short term plans to increase consumption by the household and commercial sectors.

Business structuring• Participate in the bidding process for Regasificadora

del Pacífico and the Buenaventura-Yumbo gas pipeline, as a supply and back-up project for national natural gas supplies.

• Begin the conceptualization of a project to re-gasify liq-uid gas as an alternative to make use of the installed capacity at the Ballena - Barranca gas pipeline, to which end the pre-conceptual engineering studies will be contracted.

• Assess the feasibility of substituting diesel fuel for LNG for electric power generation in the island of San Andrés, and of other gas supply initiatives for the Pacific coast and Colombia’s northeastern region, among others.

New low-emissions generation projects inspire our transformation to address the energy market’s future needs.

Service with quality• Improve our response level in time and quality.• Structure an action plan focused on improving

relations with customers through the imple-mentation of targeted activities to enhance the perception of the service provided by TGI.

Regulatory Management

Short term• Continue to promote the adoption of a trans-

portation rate methodology that incorporates best international practices and that includes a WACC rate that adequately reflects the risks faced by the business.

• Promote a natural gas supply plan that gives long-term signals (10 years) to the chain, in order to make viable demand projects and to define the reliability assets required to ensure service continuity.

• Achieve a Regulatory Useful Life assessment that reflects the conditions of gas pipeline con-struction in Colombia.

• Identify assets that have a reliability and sup-ply role in order to set adequate remuneration for them.

• Propose an adequate gas-electricity coordina-tion structure that acknowledges the needs and benefits of both sectors.

• Promote progress in Transitory Supply Invest-ment Project Plans (IPAT, for the original in Spanish), given their importance for the coun-try’s reliability and supply.

Medium term• Promote competition under equal conditions be-

tween value chain participants by changing the rules on vertical integration in Colombia.

• Promote commercial arrangements for regas-ification plants to serve as backup for the entire national transportation system.

• Assist in the implementation of the suggestions of the Energy Transformation Mission, particu-larly in the event of a change in the transporta-tion methodology.

We benchmark the best international practices to promote new industry regulations



Growth Projects


Our infrastructure growth, maintenance and improvement projects provide sup-port to operational continuity, to expand the business and address market needs in a timely and cost-effective manner in or-der to fulfill our value proposition of reli-able, continuous and high-quality service.

When we structure, plan and execute corporate infrastructure, we are also challenged to manage with a vision of the future and to proactively manage our natural and social environment simulta-neously with our operations and plans.

(103-2) (103-3)

How we manage it

Our infrastructure expansion and maintenance projects are matured and managed by means of joint work between the Projects and Assurance departments and other TGI areas, to support our internal processes and business expansion plans.

All our expansion projects are aligned with the Corporate Strategic Plan, and are consequently taken into consideration in our business consol-idation and expansion decisions to ensure our ca-pacity to address expected increases in demand and mass use of gas as the cleanest fossil fuel available.

RESULTS

• Increase in transportation capacity and support for the Colombian energy system with the start-up of the Puerto Romero Vasconia Loop, which forms part of the Cusi-ana Phase IV expansion project, a 22.5 kilometer long and 30-inch diameter pipeline that increased the capac-ity of the National Transportation System by 46 million MMCFD, equivalent to 5% of total capacity in Colombia. It should be highlighted that this project was built in a record time of 10 months, over 2 kilometers per month, and was delivered one month ahead of the agreed sched-ule, which makes it a milestone in the infrastructure sec-tor and demonstrates our execution capacity. 100% of the Cusiana Phase IV expansion project will be in oper-ation in 2020.

• The Cusiana Phase IV expansion project created about 600 jobs during the peak building stage, helping to drive the goods and services sector and increasing the life quality of the municipality of Puerto Boyacá, in the de-partment of Boyacá.

• Progress in the works for the two-way flow at Ballena – Barrancabermeja, which ensures availability to transport a flow of 100 MMCFD from inland Colombia to the north of the country. These works enabled the south-to-north flow over the gas pipeline, maintaining the capacity to transport 260 MMCFD in the north-to-south direction, as it has operated since it was first built. This project is very important because it will enable transporting gas to the Colombian north coast at a time when current sources in the area are declining to supply the south of the country.

• Completion, withing the agreed time, efficiency and cost parameters, of the projects to transfer the Boquemon-te Inspection Chamber and the Pompeya Section; these works required a great deal of precision to secure the operation’s stability and natural gas supplies.

• Optimization of the City Gates, which are the points where gas is transferred to the cities, on which works were performed to optimize gas delivery in accordance with parameters established by CREG, to begin distribu-tion to homes and industries under conditions of safety and lower environmental impact. - Completion of four new connections to the National Transportation System to supply major senders. - Progress in the next stage of the Safe Infrastructure project to improve corporate facilities that require measures and special protection to work in confined spaces and at heights, in order to

help reduce risks associated with Occupational Safety and Health.

• Planning of the soundproofing project at the Padua Compression Station, which despite its natural isolation requires a noise solution to prevent effects to the neighboring community. In this project, the plan is to build an acoustic barrier made of rock wool, which was the tech-nology selected from among 100 alternatives referenced for TGI by the CIDET technical cen-ter, and which will be replicated in other oper-ations centers.

• Participation in the national government’s Works for Taxes program, through which com-panies can undertake works with social impact in areas affected by the armed conflict in lieu of tax payments. TGI has successfully engaged in a project of this type in the urban area of the municipality of La Paz, Cesar, where a water and sewer network is being built to ensure the supply of running water.

CHALLENGES

• Complete and start up the projects within the assigned scope, time and budget.

• Enhance project risk management at the operating level.

• Implement a budget estimation plat-form.

• Assist the commercial area in devel-oping new initiatives, opportunities and projects with customers.

A happy and well qualified team enables us to improve our management to grow in the market



2019 ProjectsCusiana Phase IV expansion

Two-way flow at Ballena – Barrancabermeja

Budget

USD 92.3 million

Budget

USD 2.53 million

Investment in 2019

USD 31.95 million/COP 105,312 million

Investment in 2019


2019 completion rate

80.52%


90.72%

Objective

Increase natural gas transportation capacity at the Cusiana - Vasconia gas pipeline by 58 MMCFD, to unify them throughout the document.

Areas of influence

Puerto Boyacá (Boyacá), Miraflores (Boyacá), Jesús María (Santander) and Florián (Santander).

Achievements

• Started up operation of the Puerto Romero - Vasconia loop. This enables carrying gas from the central region of the country to the Antioquia region.

• The first 22.5 kilometers were built in record time (10 months).

Objective

Assure the security and reliability of the natural gas service in the country over the next years.

Areas of influence

Barrancabermeja, Santander; San Alberto, Cesar; Aguachica, Cesar; Curumaní, Cesar; Agustín Codazzi, Cesar; la Jagua del Pilar, La Guajira; Hato Nuevo, La Guajira.

Achievements

• Mechanical availability of the proj-ect to assure a flow of 100 MMCFD from the central region to the north of the country.

Economic, social and environmental impacts

• It creates job opportunities for skilled and unskilled labor in the region.

• It generates economic revenues in the regions through the distribution of accrued taxes and the consump-tion of goods and services.

2020 Challenges

• Integrate signals into the SCADA TGI system.

• Complete the project’s civil works.


• The project involved a team of 460 people, including employees and contractors, and created close to 100 jobs in the districts of Calderón, Velásquez and Pizarra in Puerto Boyacá.

• Excellent relations with the communities, institutions, corporations and other stake-holders in the areas of influence of the project.

• Backing was provided for 80% of the coun-try’s electric power generation.

2020 Challenges

• Start up operations of the loops at Puente Guillermo - La Belleza and El Porvenir - Miraflores.

• Complete the civil works.

(103-3)



Transfer of Boquemonte Inspection Chamber

Replacement of Sections

Budget

USD 1.5 millionBudget

USD 11.6 millionInvestment in 2019


Investment in 2019



97.5%2019 completion rate

97.5%

Objective

Assure inspection of the Sucre Orien-tal - Cogua section, of approximately 65 kilometers.

Areas of influence

Chiquinquirá, Boyacá.

Achievements

• Mechanical completion was achieved in the third quarter of the year.

• The project to Transfer the Boque-monte Inspection Chamber enables sending inspection tools through the Sucre Oriental Cogua gas pipeline, to assure its integrity. The activities to disassemble and transfer the in-spection chamber were achieved through teamwork and coordina-tion. The activities were successful thanks to careful planning, the en-gagement of personnel trained and qualified for maneuvers of this type, and the design of specialized tools and equipment.

Objective

Replacement of sections that have reached the end of their regulatory useful lives, according to CREG Resolution 126/2016.

Areas of influence

Yondó, Antioquia; Barrancabermeja, Santander; Puerto Wilches, Santander; Cantagallo, Bolívar; San Pablo, Bolívar; and Villavicencio, Meta.

Achievements

• Start up of operation of the Yariguíes- Puerto Wilches section.

• Start up of operation of the Pompeya section.


• It creates job opportunities for skilled and unskilled labor in the region.

• It generates economic revenues in the mu-nicipalities through tax distributions and the consumption of goods and services.


• It creates job opportunities for skilled and unskilled labor.

• It generates economic revenues in the region through tax distributions and the consump-tion of goods and services.

2020 Challenges

• Project close-out.

2020 Challenges

• Start up operation of the sections at Zona Industrial Cantagallo - Can-tagallo; Cantagallo – San Pablo; Galán – Yondó.

• Complete the project’s civil works.



Works for Taxes

Budget

USD 2.66 million

Investment in 2019

USD 0.006 million/COP 20.1 million


39%

Objective

Improve the coverage and service con-tinuity level of the water utility service for the population of the urban area of the municipality of La Paz, Cesar. The aim is to improve the living conditions of the population by improving the drink-ing water supply system.

Areas of influence

La Paz, Cesar.

Achievements

• The mercantile trust contract was signed.

• The equivalent amount to the tax-es was deposited within the time frames established by the tax au-thority (DIAN).

• Approval of the project’s overall timetable by MVCT.

• Contracts were signed with third parties (civil works and contract su-pervision).

• The project management, civil works and contract supervision con-tracts were signed.

• Certificates of commencement were signed for the civil works and contract supervision contracts.


• Relations with the communities and contribution to social responsibility in the country.

• It creates job opportunities for skilled and unskilled labor, and eco-nomic revenues for the municipali-ties through the distribution of taxes and the consumption of goods and

Upgrade to City Gates of the Mariq-uita – Cali Gas Pipeline

Budget

USD 2.9 millionInvestment in 2019



82.49%

Objective

Increase capacity and improve the reliability of the systems that com-prise the city gates.

Areas of influence

In Valle: Florida, Cali, Guacarí, El Cerrito, San Pedro, Andalucía, Roldanillo, La Unión and Cartago; in Quindío: Montenegro, Quim-baya and Calarcá; and in Caldas: Palestina, Neira and Manizales.

Achievements

• Mechanical completion of 16 city gates, to assure service availability and continuity and improve system reliability.


• It offers job opportunities for skilled and unskilled labor in the region.

• It generates economic revenues in the municipalities through the distribution of accrued taxes and the consumption of goods and services.

2020 Challenges

• Systems and equipment testing.

• Protocols for ISO 17020 cer-tification of each city gate.

services in the regions.

2020 Challenges

• Delivery of the project to the Ministry of Housing, Cities and Territories of Colombia in the fourth quarter of the year.



Safe Infrastructure

Budget

USD 2.17 million (stage 1)

Investment in 2019

USD 0.2 million/COP 655.74 million (stage 1)


18.19% (stage 1)

Objective

Minimize the risk exposure of workers during performance of operations and maintenance activities in confined spac-es, by means of upgrades to the facili-ties in accordance with regulations for the prevention of work accidents.

Areas of influence

North, southwest and central-eastern areas of the country (covering all TGI’s transport infrastructure).

Achievements

• As part of the company’s commit-ment to Occupational Safety and Health, TGI’s strategic map includes the objective of “Consolidating a strategy for sustainable develop-ment and best corporate gover-nance practices,” which includes the Safe Infrastructure Project. The Safe Infrastructure Project is aimed at improving OSH conditions for op-erations personnel, by further up-grading the physical conditions of confined spaces at the company. In 2019, the project made progress in the following aspects:

• Approval of phase 2 – Safe Infrastruc-ture Stage 1 (23 major facilities).

• Approval of phase 3 and start of phase 4 – Safe Infrastructure Stage 1 (23 major facilities).

• Start up phase 2 – Safe Infrastruc-ture Stage 2: (30 facilities).


• Motivation for workers who perform O&M activities at the company.

2020 Challenges

• Mechanical completion, upgrades at 23 locations (stage 1).

• Close-out of stage 1.• Approval of phases 2 and 3.



Operations with Integrity, Re-liability and Efficiency


(103-1) As part of its commitment to the adop-tion of best industry practices, TGI has promoted the implementation of an Integrity Management program involving all activities related to core business assets, to assure the operations, man-age risks and define mitigation plans in order to assure the transportation service we provide our customers and minimize financial impacts due to service interruptions, with the highest safety, quality and efficiency standards.

(103-2) The program is led by the Operations De-partment and is managed through three initiatives:

1. The Integrity Management Plan manages threats and identifies the risks the infrastruc-ture is exposed to, and carries out activities re-lated to information management, risk assess-ment, integrity assessment, and risk response, mitigation, repair and monitoring actions.

2. The Asset Management Plan, aligned with best practices, enables us to move forward in continuous improvement, to establish the pro-cesses related to the implementation of the maintenance strategy, and to define internal standards to leverage the company’s activities.

3. The Integrity Management System is a key element for maintaining the integrity of the gas transportation infrastructure, achieving greater operating efficiencies and optimizing the assigned resources. To this end, a spe-cialized tool was selected and implemented to manage risks associated with the variables that affect the integrity of gas pipelines (PIDT), which enables the centralized management of information for decision-making and to design strategies for safe operations, with no adverse effects to employees, customers, neighboring communities or the environment.

(103-3) Assurance of the gas transportation pro-cesses is developed based on the vision of Gru-po Energía Bogotá and the Zero Vision program, which not only guides management in guarantee-ing worker safety and health, but also in terms of aiming for efficiency.

RESULTS

• The implementation of the Comprehensive In-tegrity Risks Model is aligned with that of the parent company GEB, which enables i) perform-ing an assessment of the level of exposure to the various risks faced by the infrastructure; ii) defining the mitigation and monitoring meth-ods to be used, the inspection plans and prior-itization of responses, based on international standards and Colombian regulations. This plan was implemented and optimized in a pilot test for the Cusiana – Miraflores gas pipeline. iii) Minimizing risks to tolerable thresholds that are acceptable to the organization.

• The gas pipeline inspection cycles are per-formed using the In-Line Inspection (ILI) meth-odology, following the integrity assessment of the last sections included in the cycle. In 2019, a target of 9% of the total area was established, specifically for the sections Sutamarchán-La Belleza, Casacará-Curumaní and Sucreorien-tal-Cogua. In total, 6% of the area was success-fully inspected, and the Sucreoriental-Cogua section was rescheduled for 2020 due to tech-nical adjustments to the infrastructure. Includ-ing the above, the 2016 – 2019 inspection cycle has covered 97% of the total area.

• Progress of the Asset Management Plan. The plan for 2019 included i) Structuring the Master Plan of the Integrity Management program, by means of the documentation associat-ed with the Integrity Management plan and the Performance Plan (based on the ASME 31.8 S standard) and ii) draft-ing of 37 documents of the 2019 inter-nal standardization plan, 26 of which are of the Construction area and 11 of the Operations area, achieving 100% fulfillment of the established goal.

• (Own) In 2019, the continuity rate of the transportation system was 99.92%

• (Own) The number of hours of inter-ruption due to scheduled maintenance was 218 hours below the target of 285 hours, thereby producing lower impact on revenues than the budgeted amount.

• Structuring, configuration and imple-mentation of the integrity software customized for the context of TGI’s infrastructure (PIDT), which unifies and standardizes the information on threats, provides threat status infor-mation, integrity assessment, deci-sion-making criteria and response, mitigation, repair and monitoring in-formation, and it additionally ensures the efficient assignment of resources, among other factors.

• Controlling the indicator on the max-imum number of hours of service in-terruption per year due to scheduled maintenance by the company, and its impact on gas transportation revenues, which represents greater demands and efficiencies in the daily coordination of the transportation system.

Our Integrity Management program assures the operation, manages risks and defines mitigation plans for effective operations.

How was it achieved?

The indicators and initiatives of the Strategic Plan are monitored in terms of achievement of the or-ganizational goals. The goal is to achieve efficient operations and maintenance in order to ensure the infrastructure’s integrity and reliability. Every month the achievements and results of each ini-tiative are reported to the Operating Committee of the Board of Directors , and a quarterly report is submitted to the Board of Directors. The goal of superior performance is driven by monitoring and analyzing results and operations improvement proposals made by the operations and mainte-nance teams through the primary committees.

Performance is measured by fulfillment of the in-dicators associated with:1. Reduction of impact on revenues due to sus-

pensions related to maintenance tasks.2. Number of scheduled hours of suspension in

service provision.3. Integrity Management Plan (Risk Model).4. Asset management plan.5. Integrity Management System (PIDT tool).6. Continuity of the system’s service.



CHALLENGES

• Continue to develop the Integrity Manage-ment Plan by implementing the integrity and risk management tool (PIDT), fully configured and suitable for decision-making throughout the transportation system infrastructure. In the medium term, the segments identified as “high risk” in the baseline will be managed. In the longer term, the process will be stabilized, assuring the resources and lowering risks to tolerable levels (as low as possible).

• In the short term, run the ILI in the gas pipe-line section Sucreoriental-Cogua to complete 100% of the cycle for the infrastructure that can be inspected with smart tools. In the medi-um term, the inspection plan for the next cycle

Our greatest challenges are to speed up the processes and times, and reduce errors.

will be structured and performed of the area that can be inspected using technologies of this type, and over the longer term the inspection plan will be adjusted based on the risk assessment.

• Asset Management Plan: In the short term, all the sup-porting documentation will be structured for the Master Integrity Plan, as well as the reliability work plan for the core assets of the business. In the medium term, the reliability engineering tools and techniques will be strengthened, and in the longer term maintenance deci-sion-making will be leveraged by means of maintenance and risk management systems.

Digital TransformationWhy is this topic important?

At TGI we conceive our digital transfor-mation as a cross-cutting process within our Strategic Business Plan. The activi-ties of digital transformation focus on three key pillars: processes, people and new technologies.

The approach is based on reviewing the way things are currently done in or-der to find ways to optimize the resourc-es with the support and use of smart tools in order to obtain the best results and effectively achieve our goals.

The digital transformation process fo-cuses on providing support to operations, consolidating TGI’s position in the indus-try, the company’s growth and fulfillment of contractual terms, in order to solidify long-term business relationships.

Given that gas transportation is the priority, a cross-disciplinary work team was created in-volving areas such as sales, operations, regula-tory compliance and finance, to launch the dig-ital transformation process, defined not as the application of technology, but as an evolution of the organization’s processes leveraged by tools that enable the simplification of procedures and the minimization of errors, based on business re-quirements and changes in the business.

How was it achieved?

In June 2019, we began to implement the soft-ware with guidance from Aveva Group plc, a UK-based information technology company.

This technological intervention model is trans-forming the organization by changing both the technology and the way people work. The new technological platform, CGA, was integrated with the SCADA measuring system and the SAP SD billing module, thereby automating the entire pro-cess and eliminating manual processing.

Now we are able to visualize in real time the capacity and availability of each pipe, in order to make quicker and more effective deals.

While never neglecting the operation, we aim to become strategic enablers for the business.

The Information Technology Strategic Plan initially focused on the gas trans-portation support system. The previous system fulfilled the needs of the Oper-ations Department, but only controlled the nomination process and posted re-cords to the general ledger accounts. The new platform manages the process from end-to-end, starting with the sales process and ending in billing, involving all operating aspects, including detailed management of general ledger accounts, all within regulatory requirements.



RESULTS

• CGA Transportation System.• Design of the cybersecurity model.• Design of the backup DRP at the

computer center.• Definition of the strategy to unify

applications.• Business intelligence and data

analysis.• The Integrity area application.

It predictively helps manage gas pipeline assets based on environmental variables, in order to perform maintenance.

CHALLENGES

• To become 80% strategists and 20% operators, in order to achieve TGI’s value proposition.

• Cover all business areas.• Continue the consolidation process

to ensure the operation has the tools it requires.

• Make full use of the company’s information through a data analysis strategy that is currently in progress. It already covers a few areas, and in 2020 it will provide support to the sales area to enhance its accuracy and efficiency.

Initiatives

Following the implementation of this process, new technological requirements arose in differ-ent company areas, such as the Sales and Op-erations areas, which can both make use of the data obtained from each process for relevant decision-making purposes. To this effect, dash-boards were developed to automatically provide the different areas access to the information they require for analysis in their own processes.

Investments are being made in IT assets that add value to the business based on the require-ments of each process. This not only contributes to the migration towards smart tools, but also provides the areas greater autonomy over the in-formation they require for decision-making.

Travel expense management dashboard. We are developing a dashboard on travel expense allow-ances for the Audit area. The system enables the area to review who made such expenses, where, and for how long, in order to control the allowances made by the company for performance of their ac-tivities and to optimize the use of these resources.

“Each area requests the information it re-quires, according to its needs.”

The dashboards will be progressively imple-mented throughout the company, because this transformation is directly associated with the company’s business activities, in accordance with the needs for analysis over time. Ideally, a busi-ness intelligence area will be created to orches-trate the company’s analytics strategy.

Supply Chain


The Sourcing Department leads the activities aimed at satisfying purchasing and contracting requirements in a timely manner for adequate performance of the company’s activities, and con-sequently works in coordination with the various corporate areas.

Its aim to the carry out an effective sourcing process, from planning to acquisition, as a func-tion of cost, risk, impact, opportunities and market conditions. Consequently, one of its key objectives is to objectively identify and select suppliers who fulfill the environmental, security, occupational health and good social practices standards imple-mented by the company and Grupo Energía Bo-gotá. The contracted suppliers provide consulting services, equipment and support for civil works and maintenance, to ensure efficient and reliable operations nationwide.

How we manage it

(103-2) (103-3) Our supply chain management is aligned with the Strategic Sourcing Model and the Sourcing Policy, which fulfill the principles of planning, equality, morality, effectiveness, econo-my, timeliness, impartiality and publicity.

We additionally have a Contracting Manual and a Works Management and Contract Supervision Policy; as well as Instructions for Supplier/Con-tractor Performance Assessments, which con-tribute to competitiveness and quality and ensure responsible, sustainable and effective sourcing as a function of cost, risk, impact and timeliness.

The Sourcing Management standards, forms, templates and procedures form part of the company’s Integrated Management System and its indicators.

One of the priorities of our technological transformation is to use business intelligence as an analytics tools.

The increased strengthening of operations through technological tools was instrumental in increasing our company’s effectiveness and efficiency in 2019.

We provide support to the operations through a Strategic Sourcing Model



RESULTS

• Updating of the Contracting Manual in line with the redefined corporate strategy and guidelines of GEB.

• Implementation of the SAP Ariba software tool that enables the centralization and unification of all Sourcing Management information, which enhances access to information, data analysis, processing times and decision-making.

• SAP has also enabled us to optimize process-es in a sustainable manner by contributing to the corporate objective of achieving zero use of paper.

• Implementation of contract management by categories, which enabled segmenting and spe-cializing sourcing team members with relevant market knowledge in order to promote syner-gies and efficiencies in contracting processes.

• The Annual Suppliers Meeting was held, which was attended by 302 suppliers and the CEO of GEB, Astrid Álvarez, to communicate the Ethics and Compliance Program and the new sourcing policies. Additionally, awards were granted to companies with outstanding performance in the following categories:1. Community relations.2. Project performance.3. Operating supplier.4. Occupational Safety and Health.5. Contribution to digital transformation.6. Corporate support.7. Training provider.

• Strengthening of the production projects in the areas of influence prioritized by the Cusiana Phase IV project. This program provided train-ing to entrepreneurs and small businesses on topics including sales, marketing, social me-dia, finance and production linkage processes, aimed at improving their product sales and promoting their companies’ growth and devel-opment. This program was carried out through Fundación para el Desarrollo Sostenible de Co-lombia (FUNDES). In addition to this program, in Bogotá a farmer’s market was organized involv-ing small farmers from the region to promote and sell their products and enable them to open new markets.

• (102-9) In 2019, we managed 342 contracts worth approximately USD 120 million.

• (308-1) (414-1) Of all new suppliers, 14 (29%) were assessed according to environmental, so-cial and health and safety criteria.

• Assessments were performed on 212 ongoing contracts in accordance with performance cri-teria; 88% received top scores in environmen-tal and Occupational Safety and Health aspects (OSH).

• (102-48) The previous year’s report only includ-ed new suppliers that had received top perfor-mance scores in these criteria during the year.

• In these same terms, during 2018, 338 con-tracts were assessed, 88% of which received the top performance score. In other words, this indicator has remained constant in the last two years.

• (102-9) (204-1) (Own) We entered into contracts with 290 suppliers, 280 of which were local (national), accounting for 96.55% of our supply chain, supplying 93% of the goods and services we contract. They are from 17 Colombian de-partments, the most numerous of which are Cundinamarca and Santander.

• (204-1) (Own) Our local purchases increased from 79.8% to 96.55% from 2018 to 2019.

• (Own) Our efforts produced savings of 6.3% compared to the budget of the competitive pro-cesses managed in 2019.

Additionally, the contractor selection and contracting processes are subject to approval by corporate bodies, depending on the amounts involved, in accordance with the corporate gover-nance guidelines of TGI and GEB. The responsi-bilities of the operating and executive contracting committees are defined in the Contracting Man-ual.

The processes are randomly audited by the Internal Audit Department, or specifically at the request of any interested party.

We also have an HSEQ and Social Manual for Contractors, which establishes the requirements contractors and subcontractors must fulfill re-garding Occupational Safety and Health, social, environmental, energy and quality management, during performance of contractual activities.

As part of the assurance and monitoring pro-gram, contractor assessments are performed, covering topics related to HSE and social man-

agement, as specified in the Instructions for Performance Assessments. The contract supervisors are responsible for performing the assessments, and the Sourcing Depart-ment is responsible for managing the assessment tools, consolidating the information and establishing the actions to be taken pursuant to the instructions.

Regarding HSE, the contract supervisor is responsible for ensuring fulfillment of the requirements established in the manual, as well as the legal requirements of each contract. We have also established internal organizational targets related to Occupational Safety and Health, which are the responsibility of all employees and contractors.

By assessing our contracting processes based on best practices, we strengthen our management.

290contracts were managed in 2019, 280 of which were with local (national) suppliers

No. 1Methodology

No. 3Organizational structure

No. 5Education and training

No. 2Policies and regulations

No. 4Information Systems

No. 6Suppliers and stakeholders

FOCUS AREAS

Sourcing model

CloseContract

ContractPerformance

ImplementationStrategy

IdentifySuppliers

Identifyrequirements 4.

Termination

3.Performance

2.Selection

1.Planning



CHALLENGES

• Obtain certification from the UK Chartered In-stitute of Procurement and Supply, which re-views five dimensions for achieving excellence in procurement in terms of policies, strategies, procedures and processes of the organization’s supply chain and purchasing management.

• Further develop management of sourcing by categories internally, in order to optimize ser-vice offerings in accordance with the company’s needs.

• Create venues of communication and training for the most critical suppliers due to their im-pact on the business, aimed at promoting new cultural attributes, Superior Performance, Life Comes First and Social Awareness, so that they

are increasingly aligned with adequate environmental and social standards.

• Strengthen bonds with our suppliers through the stabilization of SAP Ariba as the single supplier registry. Hav-ing centralized information increases their visibility, as it facilitates sending them business information such as brochures and offers them new busi-ness opportunities through other GEB member companies.

GRI Table


Annexes ¯

GRI Stan-dard Table of Contents Location Page

External assur-ance

GRI 102: General disclosures 2016

Organizational profile

102-1 Name of the organization Transportadora de Gas Interna-cional S.A. E.S.P. X

102-2 Activities, brands, products and services Gatefold Not appli-

cable X

102-3 Location of headquarters The company’s headquarters is located in Bogotá, Colombia X

102-4 Location of operations Gatefold Not appli-cable X

102-5 Ownership and legal form

TGI is a public-private company, incorporated as a joint stock corporation, pursuant to the provisions of Law 142/1994.

X

102-6 Markets servedGatefoldMarket and New Business Devel-opment

87 X

102-7 Scale of the organizationGatefoldTalent ManagementAnnexes

56, 62, 83 X

102-8 Information on employees and other workers

Talent ManagementAnnexes 62 X

102-9 Supply Chain Supply Chain 107 X

102-10 Significant changesDuring 2019 there were no signifi-cant changes to the organization and its supply chain

X

102-11 Precautionary Principle or approach

TGI applies the precautionary principle to its environmental management in accordance with principle 15of the UN Rio Declaration on the Environment and DevelopmentAnnexes

X

102-12 External initiatives

Support for the Sustainable De-velopment Goals (SDGs), which demonstrates the corporate com-mitment to the Principles of the United Nations Global Compact

X

102-13 Associations

Our main association member-ship and affiliations are:

* Andesco and Naturgas, trade associations that bring togeth-er the main companies in the industry to discuss policies and regulations* Commercial aspects are discussed with the Natural Gas Market Manager (BMEC, for the Spanish original) * Technical aspects and interna-tional practices are discussed with the National Center of Gas Operations (CNO Gas, for the Spanish original)

We also participate in consulta-tions promoted by the govern-ment through the following organizations:

* Ministry of Mines and Energy* Energy and Gas Regulatory Commission (CREG, for the Span-ish original)* National Planning Department (DNP, for the Spanish original)* Mining and Energy Planning Unit (UPME, for the Spanish original)* Superintendence of Household Utility Services (SSPD, for the Spanish original)* National Hydrocarbons Agency (ANH, for the Spanish original)

X

Strategy

102-14 Statement from senior decision-mak-er

Letter from the senior executives to shareholders and stakeholders 6 X

102-15 Key impacts, risks and opportunities Annexes

Ethics and integrity

102-16 Values, principles, standards, and norms of behavior

Governance, Ethics and Trans-parency 30 X

102-17 Mechanisms for advice and concerns about ethics

Governance, Ethics and Trans-parency 32


102-18 Governance Structure Governance, Ethics and Trans-parency 20 X

102-22 Composition of the highest gover-nance body and its committees

Governance, Ethics and Trans-parencyand Annexes

20 and 22

102-23 Chair of the highest governance bodyGovernance, Ethics and Trans-parency Annexes

20 and 22

102-32 Highest governance body's role in sustainability reporting

Governance, Ethics and Trans-parency About this Report

4 and 22

102-34 Nature and total number of critical concerns

Governance, Ethics and Trans-parency 24

Stakeholder participation102-40 List of stakeholder groups Sustainable Strategy 39 X


GRI Table ¯

GRI Contents Index2019 TGI Sustainability Report

102-41 Collective bargaining agreements Social strategy for the transfor-mation of the territories 63 X

102-42 Identifying and selecting stakeholders Sustainable Strategy 38 X

102-43 Approach to stakeholder engagement Sustainable Strategy 39 X

102-44 Key topics and concerns raised Sustainable Strategy 39 X

Practices for preparation of this report

102-45 Entities included in the financial statements About this report 4 X

102-46 Defining report content and topic boundaries Sustainable Strategy 40 X

102-47 List of material topics Sustainable Strategy 41 X

102-48 Restatements of information

Supply ChainAnnexesThroughout this report any changes in figures, scope and limits are reported, as applicable.

107 X

102-49 Changes in reporting

Sustainable StrategyAnnexesDuring 2019, we carried out a review of material topics, which provided orientation for the con-tents of this report.

4 and 41 X

102-50 Reporting period About this report 4 X

102-51 Date of most recent report About this report 4 X

102-52 Reporting cycle About this report 4 X

102-53 Contact point for questions regarding the report About this report 4 X

102-54 Claims of reporting in accordance with the GRI Standards About this report 4 X

102-55 GRI Contents Index GRI Contents Index 144 X

102-56 External assurance About this report 4, 155 X

Material topicsGRI Stan-dard

Table of Contents Location Page Omissions

Ex-ternal assur-ance


GRI 102: General disclosures 2016

GRI 205: Anti-corruption 2016

GRI 405: Diversity and equal opportunity 2016

GRI 415: Public policy 2016

103-1 Explanation of the material topic and its boundary

Governance, Ethics and Transparency 20, 30 X

103-2 The management approach and its components


103-3 Evaluation of the management approach


205-1 Operations assessed for risks relat-ed to corruption

Governance, Ethics and Transparency. Additionally, annex 102-15 includes infor-mation on significant risks associated with corruption identified through our risk assessment.

30, 33

205-2Communication and training on anti-corruption policies and proce-dures

Governance, Ethics and TransparencyAnnexes

33

A breakdown by region is not provided for contractor and supplier information.

X

205-3 Confirmed incidents of corruption and actions taken

No corruption cases were reported in 2019.There have been no changes in contracts with business partners arising from breaches related to corruption.There are no reports of public legal proceedings related to corruption filed against the organization or its employees.

33 X

415-1 Contributions to political parties and/or their representatives


26 and 33

Operations with Integrity, Reliability and Efficiency

GRI 103: Management approach 2016


Operations with Integrity, Reliability and Efficiency 100 X





Own Continuity of the transportation system

Operations with Integrity, Reliability and Efficiency 101

Own Average annual availability of gas pipeline transportation capacity Annexes X

Own Hours of contract suspension due to maintenance during the year


Own Loss indicator (%) Annexes X

Own Maintenance plan performance (%) Annexes

Own Length of transmission and distri-bution lines Annexes

Digital Transformation


103-1 Explanation of the material topic and its boundary Digital Transformation 103

103-2 The management approach and its components Digital Transformation 103

103-3 Evaluation of the management approach Digital Transformation 103

Environmental responsibility

Biodiversity


GRI 304: Biodiversity 2016

103-1 Explanation of the material topic and its boundary Biodiversity Management 72 X

103-2 The management approach and its components Biodiversity Management 72 X

103-3 Evaluation of the management approach Biodiversity Management 72 X

304-1Significant impacts of activities, products, and services on biodi-versity

Biodiversity ManagementAnnexes 73 X


GRI Table ¯

Noise


103-1 Explanation of the material topic and its boundary Noise 77

103-2 The management approach and its components Noise 77

103-3 Evaluation of the management approach Noise 77

Wastes

GRI 306: Waste 2016

306-2 Waste by type and disposal method Annexes X

Water

GRI 303: Water and effluents 2018

303-3 Water extraction Annexes X

303-5 Water consumption Annexes

Regulatory compliance

GRI 307: Environmental compliance 2016

307-1 Environmental penaltiesNo environmental penalties were imposed on TGI during the reporting period

Climate change action

GRI 307: Environmental compliance 2016

GRI 302: Energy 2016

GRI 305: Emissions 2016

103-1 Explanation of the material topic and its boundary Climate Strategy 74 X

103-2 The management approach and its components Climate Strategy 74 X

103-3 Evaluation of the management approach Climate Strategy 74 X

302-1 Energy consumption within the organization Annexes X

305-1 Direct GHG emissions (Scope 1) Climate Strategy Annexes 74 X

305-2 Indirect GHG emissions (Scope 2)

Climate Strategy Annexes 74 X

305-3 Other indirect GHG emissions (Scope 3)

Climate Strategy Annexes 74

Team with talent, motivation and results-oriented


GRI 202: Market presence 2016

GRI 401: Employment 2016

GRI 402: Labor-management relations 2016

GRI 404: Training and education 2016


GRI 406: Non-discrimination

103-1 Explanation of the material topic and its boundary Talent Management 56 X

103-2 The management approach and its components Talent Management 56 X

103-3 Evaluation of the management approach Talent Management 56 X

Team with talent, motivation and results-oriented


GRI 202: Market presence 2016

GRI 401: Employment 2016

GRI 402: Labor-management relations 2016

GRI 404: Training and education 2016


GRI 406: Non-discrimination

202-1 Ratio of internal minimum wage to local legal minimum wage

Talent ManagementAnnexes 62

202-2 Proportion of senior management hired from the local community

Talent Management Definition of senior man-agement: Senior and middle management.The organization’s geo-graphic definition of “local”: regions within the Colombi-an national territory.Definition used for “locations with significant operations”: TGI operations areas

60

401-1 New employee hires and employee turnover

Talent Management Annexes 60

401-2Benefits provided to full-time employees that are not provided to temporary or part-time employees


401-3 Parental leave Talent Management Annexes 60

402-1 Minimum notice periods regarding operational changes Talent Management 60

404-1 Average hours of training per year per employee

Talent Management Annexes 58 X

404-2Programs for upgrading employee skills and transition assistance programs

Talent Management 58

No infor-mation is included on transition pro-grams to fa-cilitate future employabil-ity or end of professional career due to retirement or layoffs

404-3Percentage of employees receiving regular performance and career development reviews


405-1 Diversity of governance bodies and employees

Governance, Ethics and Transparency,Talent Management and Annexes

25 and 60

405-2 Ratio of basic salary and remunera-tion of women to men


406-1 Incidents of discrimination and corrective actions taken Talent Management 60

Own Percentage of management posi-tions held by women



GRI Table ¯

Own Total and percentage of trained employees Talent Management 58

EU15 People nearing retirement age Talent Management Annexes 62

The reported information does not include a breakdown by region

Own Employee work environment (em-ployee commitment) Talent Management 58 and

60

Own Diversity Talent ManagementAnnexes 60

Occupational safety and health


GRI 403: Occupational Safety and Health 2018


Vision Zero, Occupational Safety and Health 64 X





403-1 Occupational safety and health management system

Vision Zero, Occupational Safety and Health Annexes

64

403-2 Hazard identification, risk assess-ment, and incident investigation

Vision Zero, Occupational Safety and Health Annexes

64 and 65

403-3 Occupational health services Vision Zero, Occupational Safety and Health 66

403-4Worker participation, consultation, and communication on occupation-al safety and health

Vision Zero, Occupational Safety and HealthAnnexes

64-65

403-5 Worker training on occupational safety and health

Vision Zero, Occupational Safety and Health 67

403-6 Promotion of worker health Vision Zero, Occupational Safety and Health 66

403-7

Prevention and mitigation of occupational health and safety impacts on workers directly linked by business relationships

TGI S. A. ESP enters into business agreements to sell gas transportation services to other industries (thermal power generators, cement manufacturers, agricul-tural products). In order to maintain a preventive approach towards negative impacts on occupational safety and health, a risk and hazards matrix has been developed that is monitored on an ongoing basis and which covers employees and contractors within the com-pany’s operating facilities. In turn, prevention of impacts is managed through contrac-tual clauses and information provided to contractors through training programs.

403-8 Coverage of the occupational safety and health management system

Vision Zero, Occupational Safety and Health 67

403-9 Work-related injuries

Annexes, Section on key impacts, risks and oppor-tunities (403-1) and hazard and incident identification (403-2).Rates are calculated in terms of each 1,000,000 hours worked, following international standards such as OSHA 300 and 18001. TGI SA ESP also monitors its objectives through the Lost Time Injury Frequency Rate (IFI AT, for the Spanish original) for employees and contractors.

Total work-related accidents of employees and contrac-tors are not broken down by gender

X

403-10 Work-related ill healthThere were no reports of occupational diseases during 2019

Occupational diseases and deaths from occupational diseases are not reported for contrac-tors

X

Own

Days worked by contractors and sub-contractors involved in con-struction, operation and mainte-nance activities

Annexes

Own

LTIFR of employees and contrac-tors Indicators on frequency and severity of incidents leading to lost time by employees and contractors

Vision Zero, Occupational Safety and HealthAnnexes

67

Own DeathsVision Zero, Occupational Safety and Health Annexes

67

Economic value generated


GRI 201: Economic performance 2016


Superior Performance and Profitability 82 X





201-1 Economic value generated and distributed

Superior Performance and ProfitabilityAnnexes

82, 83 X

Own Capital structure Annexes

Own Operating revenue, net profit and EBITDA Annexes


GRI Table ¯

Transformation of territories


GRI 203: Indirect economic impacts 2016

GRI 411: Rights of indigenous peoples 2016

GRI 412: Human Rights Assessment 2016

GRI 413: Local communities 2016


Social strategy for the trans-formation of the territories 46 X





203-1 Infrastructure investments and services supported

Social strategy for the trans-formation of the territories 49

203-2 Significant indirect economic impacts

Social strategy for the trans-formation of the territories Annexes

47 and 48

411-1 Incidents of violations involving the rights of indigenous peoples


412-3

Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening

A significant agreement is defined as any contract or agreement entered into to materialize the company’s shared value strategy in the territories.

47

413-1Operations with local community engagement, impact assessments, and development programs

This indicator is reported based on records of current environmental impact as-sessments, local commu-nity development programs based on community needs and formal complaints and/or claims made by local communities.

47 X

413-2Operations with significant (real and potential) negative impacts on the local communities


This indicator is reported based on the company’s risk-based management approach and does not re-port impacts

OwnPeople physically or economically displaced and who received com-pensation by project type


OwnNumber of complaints resolved related the impact of contractor behavior on the communities


Own Type of contributions Social strategy for the trans-formation of the territories 49 to 54

OwnPeople physically or economically displaced and who received com-pensation by project type


Own Social investment Social strategy for the trans-formation of the territories 48

Own Types of philanthropic activities Social strategy for the trans-formation of the territories 48

The amount invested in corporate vol-unteer work is broken down. It does not include expenses other than the time invested, administrative expenses and donated products

Market growth and development


GRI 418: Customer privacy


Market and New Business Development 85 X





418-1Substantiated complaints concern-ing breaches of customer privacy and losses of customer data

Market and New Business Development 87

Own Market share Market and New Business Development 86

Own Quality of service Market and New Business Development

86 and 87 X

Own Customer satisfaction Market and New Business Development 87

Own Incremental volume and market development (industry)

Market and New Business Development

13 and 86 X

Own Incremental volume and market development (mobility)

Market and New Business Development

13 and 86

Own Presence in legislative and industry association events

Market and New Business Development 88

Growth Projects


103-1 Explanation of the material topic and its boundary Growth Projects 90

103-2 The management approach and its components Growth Projects 90

103-3 Evaluation of the management approach Growth Projects 90, 92


GRI Table ¯

Contractor development


GRI 204: Acquisition practices 2016

GRI 308: Supplier environmental assessment 2016

GRI 414: Supplier social assessment 2016

103-1 Explanation of the material topic and its boundary Supply Chain 105 X

103-2 The management approach and its components Supply Chain 105 X

103-3 Evaluation of the management approach Supply Chain 105 X

204-1 Proportion of spending on local suppliers Supply Chain 107

308-1New suppliers that were screened and selected using environmental criteria

Supply Chain 107

414-1 New suppliers that were screened and selected using social criteria Supply Chain 107

Own Proportion of local suppliers Supply Chain 107

Own Savings in contracting processes Supply Chain 107 X

Risks



Governance, Ethics and Transparency 26 to 28





Own Strategic risks Annexes 27

Annexes



No. Strategic risk Mitigation actions Potential impacts

5

Social incidents during performance of TGI operations or projects.

1. Monitor the early warning matrix on pos-sible social incidents. 2. Monitor the assistance provided in ma-terialized social incidents. 3. Report on social complaints, claims and requests (PQRS, for the original in Span-ish) by municipality 4. Prioritized action plan to address the projects’ social liabilities.5. Status of fulfillment of social and en-vironmental commitments made with communities to perform infrastructure projects.

1. Actions by communities establishing conditions in order to continue operations or a project. 2. Loss of the project’s social license due to community resistance (social viability of the project).3. Loss of infrastructure integrity due to failure to perform maintenance.4. Materialization of risk number 2: “Fail-ure to fulfill the value proposition of TGI’s investment projects due to deviations in scope, time or cost” and of TGI opera-tions.

6Possible penalties from the environmen-tal authority.

1. Monitor and control environmental re-quirements and management actions over the life cycle of the project.2. Environmental legal compliance - valid environmental license and environmental authority permits.3. Monitor the Risk Management Program.

1. Temporary or final shut-down of TGI operations.2. Cancellation or expiration of the envi-ronmental license/permit or authoriza-tion.3. Daily fines of up to 5,000 monthly legal minimum wages.4. Restitution of damages. 5. Materialization of risk number 2: “Fail-ure to fulfill the value proposition of TGI’s investment projects due to deviations in scope, time or cost.”

7 Failure to fulfill the Business Plan.

1. Monitor the company’s business plan jointly with the financial model.2. Permanent monitoring of performance of the budget.3. Efforts to raise capital (when required)4. Review the impact of exchange differ-ences on the company’s financial state-ments (cost /benefit) 5. Contractual fulfillment in terms of sus-pensions. 6. Permanent monitoring of financial state-ments and forecasts of affiliates.

1. Lower profitability.2. Lower net income.3. Higher debt/EBITDA ratio.4. Destruction of value for shareholders.5. Impact on bond prices.6. Lower ratings on bonds and the compa-ny. 7. Loss of investment grade credit rating.8. Higher financial cost due to loss of credit rating.

8 Fraud and Corruption

1. External assessments of certain critical processes focused on fraud and corrup-tion. 2. Include an assessment of segregation of duties within the scope of auditing pro-grams. 3. Program to strengthen the ethical cul-ture and adhesion to the company’s Code of Ethics by employees.4. Monitor ethical channel reports, culture strengthening program.

1. Manipulation of information for eco-nomic gain contrary to the interests of TGI.2. Unreliable information for deci-sion-making. 3. Materialization of situations of conflict of interests leading to actions that are not consistent with the company’s ethics culture.

9Failure to incorporate new businesses that create value.

1. Assess and develop commercial alterna-tives of supply and demand. 2. Develop and monitor the new business pipeline initiatives.3. Develop solid business cases based on the Maturity and Value Creation Model.4. Monitor the implementation of the In-vestment Manual and the Investment Pro-ject Policy.

1. Failure to obtain additional revenues. 2. Failure to achieve the corporate MEGA strategic vision.


1Regulatory changes unfavorable to the company’s interests

1. Attendance to events organized by CREG on changes in regulations. 2. Submit observations, comments and proposals to regulators on initiatives to change regulations. 3. Monitor through industry associations and government entities. 4. Prepare the rates file. 5. Monitor, analyze and assess the overall impact of regulatory initiatives.

1. Loss of potential market.2. Remuneration below expected levels.

2

Failure to fulfill the value proposition of TGI’s investment projects due to devi-ations in scope, time or cost.

1. Monitor the Value Creation and Project Management Model.2. Monitor risk response plans through the Risk Management Indicator. 3. Report on contractor performance as-sessments. (Communications and early warnings to service contract supervisors) 4. Lessons learned from ex-post project or end-of-phase assessments. 5. Monitor contractor OSH indicators.

1. Variations in time, cost or quality out-side the allowable ranges.2. Loss of trust and effects on TGI’s reputation.3. Penalties due to failure to meet con-tractual deadlines for project operation.

3

Work accidents that affect the health of employees or con-tractors.

1. Training of OSH leaders.2. Implementation of the “Safe Infrastruc-ture Plan”. 3. Assistance plan for contractors and in-dicator management.

1. Effects to the health of TGI and con-tractor employees and possible legal risks for the company.2. Fatal accidents of workers and con-tractors.

4Operational events that interrupt trans-portation.

1. Right of way (DDV, for the original in Spanish) monitoring and inspection plan. 2. Inspection plan using smart tools. 3. Monitor gas quality (operation) and cor-rosive gases (integrity) 4. Gas pipeline repair plan to correct loss of thickness and coating. 5. Coexistence activities with third parties (number of third-party projects under de-velopment mapped out by TGI)6. Gas pipeline maintenance plan and fulfillment of the critical systems mainte-nance strategy

1. Operating incidents that affect the infrastructure: fires, explosions, loss of life, damage to reputation, environmental effects. 2. Loss of the mechanical integrity of the pipes and non-fulfillment of commercial contracts. 3. Loss of transportation capacity.Penalties due to contractual and/or regu-latory non-compliance.4. Loss of profits.5. Additional repair and/or maintenance costs.6. Infrastructure deterioration.7. Non-continuity of the business (at the operating level).

Corporate governance and ethics(102-11) (102-15) Main impacts, risks and opportunities. Mitigation actions and potential impacts to TGI


Annexes ¯


10Not using the Ballena-Barranca infrastructure.

1. Identification of alternatives for gas pipeline remuneration.2. Required upgrades to the infrastructure: Project for two-way flow at Ballena - Bar-ranca.3. Assess regulatory alternatives for remu-neration.

1. Revenue reduction at TGI of up to 25% due to the Ballena - Barrancabermeja gas pipeline.2. Failure to find viable remuneration alternatives before December 2020.3. Failure to achieve the financial targets. 4. Failure to achieve the strategic growth vision (MEGA) and the value proposition.

11 Demand fails to grow as expected

1. Awareness-raising campaigns on the use and benefits of gas.2. Develop commercial products for non-regulated markets.3. Study of gas sources and identify and/or implement business initiatives. 4. Carry out studies to identify and/or im-plement actions for incremental demand.

1. Contract renewals are for lower quanti-ties than at present. 2. No revenue growth.3. Idle capacity.4. Failure to sign new contracts for incre-mental demand. 5. Loss of competitiveness of the natural gas value chain.

12 Unavailability of in-formation systems.

1. Monitor the implementation of the vul-nerabilities technical management plan.2. Application of the safe software devel-opment instructions.3. Level of implementation of the Security Model and the DRP Model.

1. Unavailability of BEO, the Gas Trans-portation System, SAP.

13

Not having the appro-priate and motivated human capital to develop the strategy.

1. Monitor the leader competencies devel-opment plan. 2. Monitor the company’s established per-formance management model. 3. Define and identify critical senior and middle management positions. 4. Implement the work environment plan through the organization’s leaders.

1. Deficient corporate performance.2. High personnel turnover.3. Loss of knowledge. 4. Non-continuity of critical processes.

14

Economic or repu-tation losses due to unfavorable legal decisions.

1. Monitor and update the quarterly doc-ument on legal provisions and contingen-cies.2. Implementation of the actions contained in the document on prevention of wrongful damage.3. Perform quarterly review of the legal strategy with the internal and external teams to unify legal criteria.4. Audit to processes imposing rights of way.

1. Economic losses and damage to rep-utation. 2. Lawsuits filed against TGI for breach of contract.

Aspects of the Board of

DirectorsBoard member No. 1 Board member No. 2 Board member No. 3

Names Astrid Álvarez Hernández Jorge Enrique Cote Velosa Álvaro Villasante Losada

Chairwoman of the Board Yes No No

Independent (yes/no) No Yes No

Shareholder he/she represents GEB N/A GEB

Employer com-pany GEB Carvajal Tecnología y Servicios

S.A.S. GEB

Job Title CEO CEO Low Emission Generation Chief Executive

Executive/non-executive Non-executive Non-executive Non-executive

Time as Board member 4 years 5 months 1 year and 10 months

Board commit-tee(s) he/she belongs to

Corporate Governance Com-mittee

Compensation Committee

Audit and Risk Committee and Financial and Investment Com-

mittee

Operating Committee ∫Compensation Committee

Percentage of meeting atten-dance vs total Board meetings held

14 of 14 (100%) 5 of 6 (83%) 14 of 14 (100%)

Qualifications and experi-ence related to economic, envi-ronmental and social impacts

Broad experience in strategic consulting at national and inter-national companies. Designed and implemented a new strategic procurement model at Ecopetrol that produced annual savings of over USD 150 million. Imple-mented the transformation of the Bogotá water utilities company, achieving greater business effi-ciency with high quality.

Broad experience in the defini-tion, design and implementation of corporate strategic plans, as

well as strategic human resourc-es management. Throughout

his professional career he has demonstrated his proficiency

in financial matters, and he has managed increases in revenues

at important companies in Colombia.

Over ten years of experience in the development and invest-

ment in the renewable energies industry. He has worked as

business development officer at the following companies: Accio-na Energía in Mexico and Grupo

ECOS in Panama.

Education

Civil Engineer from Pontificia Universidad Javeriana, with a master’s degree in International Relations from Ohio University; specialization in Comprehensive Environmental Management and specialization in Strategic Pro-curement and Supplier Manage-ment from Universidad de los Andes.

Business Administrator from Universidad de los Andes, with Specialization in Corporate Fi-

nance from Colegio de Estudios Superiores en Administración

(CESA) and a master’s degree in Finance from Universidad de los

Andes.

Professional in Administration and Company Management from Universidad de Salamanca, with a master’s degree in Strategic

Human Resources Management and International Trade

Corporate governance and ethics(102-22) (102-23) Composition of the highest governance body and its committees



(205-2)

Communication and training on anti-corruption policies and procedures

Informed and trained employees by region

Informed and trained employees by work category

2019

Members of the highest governance body informed and trained in anti-corruption No. %

Total number of governance body members 7

Number and percentage of members of the highest governance body who have been informed about the organization’s anti-corruption policies and procedures

7 100%

Number and percentage of members of the highest governance body who have received training on the fight against corruption 1 14%

Employees Number informed

Percentage informed

Number trained

Percentage trained

Barrancabermeja 49 100% 44 90%

Valledupar 43 100% 37 86%

Gualanday 29 100% 24 83%

Buga 10 100% 8 80%

Manizales 10 100% 10 100%

Paipa 34 100% 30 88%

Villavicencio 31 100% 24 77%

Cogua-Sabana 11 100% 9 82%

Bogotá 230 100% 204 89%

Employees Number informed

Percentage informed

Number trained

Percentage trained

Senior Manage-ment 16 100% 14 88%

Middle Manage-ment 40 100% 34 85%

Coordination 80 100% 73 91%

Performance 122 100% 105 86%

Support/assistants 189 100% 164 87%

Board member No. 4 Board member No. 5 Board member No. 6 Board member No. 7

Héctor José Fajardo Olarte

Mario Martín Mejía Del Carpio Daniel Rodríguez Ríos José Fernando Montoya Carrillo

No No No No

Yes No Yes Yes

N/A GEB N/A N/A

Ecopetrol Calidda Base Property Group Doblefer S. A. and Serifer S. A.

Advisor CEO Partner Registered Agent

Non-executive Non-executive Non-executive Non-executive

2 years and 10 months 10 months 2 years and 10 months 3 years and 10 months

Financial and Invest-ment Committee

Operating Committee

Audit and Risks Committee and Corporate Governance

Committee

Audit and Risks Committee and Corporate Governance Committee

Financial and Investment Commit-tee

Operating Committee

13 of 14 (93 %) 4 of 12 (36%) 12 of 14 (86%) 12 of 14 (86%)

A leader with capacity to provide direction and

success in complex situations, involving various functional

areas and in multicul-tural environments.

His specialties include Marketing, Business and Commercial De-

velopment, Operations and oil and gas pipe-lines management.

Broad experience in finan-cial planning, budgeting,

internal auditing and admin-istrative coordination, and

has been a senior manager in all these areas at impor-tant natural gas companies

in Peru.

Experience in corporate restructur-ing and re-engineering processes –with particular interest in their real estate assets- and in managing real estate projects in Colombia. Devel-opment and management of real

estate, with a focus on structuring and managing investments and

project development. Participated in the process of acquiring and re-structuring Grupo Amper in Spain.

Experience in recovering markets, distribution network development and management, comprehensive corporate restructuring, corporate

cultural transformation. Has 33 years of experience in the hydrocar-

bons industry.

Bachelor’s of Science in Chemical Engineer-ing from University of

Tulsa.

Business Administrator from Pontificia Universidad

Católica with executive master’s degree in Business

Administration from the Management School of Universidad de Piura.

Architect from Universidad de los Andes.

Chemical Engineer from Univer-sidad Nacional de Colombia, with

studies at international institutions in: Finance, Operations, Leadership,

Strategic Planning, Marketing, Crisis Management, Corporate Re-structuring, Corporate Governance,

Corporate Social Responsibility.


Annexes ¯

Economic Dimension Operations with Integrity, Reliability and Efficiency

(Own) Length of energy and gas transmission and distribution lines

Indicator 2017 2018 2019

Total length of the gas transportation network (km).

3,957.3 3,993.8 4,017

Indicator 2017 2018 2019

Average annual availabil-ity of gas pipeline trans-portation capacity.*

99.80% 99.31% 99.91%

Availability of compres-sion stations for gas transportation.

97.40% 98.0% 98.10%

Maintenance plan perfor-mance (%). 99.20% 99.60% 98.90%

Loss indicator (%). 0% 0% 0.454%

(Own) Average annual availability of gas pipeline transportation capacity (%) (Own) Compression station availability (%)

(Own) Maintenance plan performance (%)

(Own) Loss indicator (%)

(201-1)

Economic value generated and distributed

*(102-48) The availability figure reported in 2018 was based on a monthly average. Starting in 2019, availability is expressed as an an-nual average; consequently the average annual availability reported in 2018 has been restated.

* (102-48) Certain figures reported in 2018 have been re-stated due to the inclusion of additional general ledger accounts.Additionally, in 2019 a line item on dividends paid to share-holders was included for both the 2018 and 2019 periods.

Economic Performance2018 2019 Variation

USD USD COP %

Economic value generated (EVG) 444,390 472,971 28,581 6.4%

Operating revenues 441,730 468,820 27,090 6.1%

Financial revenues (interest, dividends, among others)

2,660 4,151 1,491 56.1%

Economic value distributed 311,232* 316,814 5,582 1.8%

Operating costs (property leases, license fees, royalties, contractor payments, among others)

62,642* 60,679 - 1,963 -3.1%

Salaries and employee benefits (salaries, pension contributions, insurance, indemnities, payroll taxes, among others)

24,826 25,959 1,132 4.6%

Dividends to shareholders (profit distribution proposal) 88,109* 90,000 1,891 2.1%

Interest payments 89,661* 69,609 - 20,051 -22.4%

Payments to governments, by country (taxes, fines, penalties, permits, among others)

44,476* 68,967 24,491 55.1%

Investments in communities 1,518* 1,600 82 5.4%

Economic value retained 133,159 * 156,157 22,998 17.3%


Annexes ¯

(Own) Operating revenue, net income and EBITDA

(Own) Capital structure

(102-7) Scale of the organization

Capital structure

2018 2019

COP USD TRM COP USD TRM

Assets 8,078,511,616,354 2,485,887,104 3,250 8,234,127,203,860 2,512,595,496 3,277

Liabilities 5,281,331,387,727 1,625,150,054 3,250 5,350,201,822,119 1,632,582,625 3,277

Equity 2,797,180,228,627 860,737,050 3,250 2,883,925,381,740 880,012,872 3,277

Non-controlling interest - -

2018 2019 Variation (USD)

USD TRM USD TRM COP %

Operating revenues 441,730 2,972 468,820 3,281 27,090 6.1%

EBITDA 328,979 2,977 360,423 3,281 31,444 9.6%

Net profit 136,005 3,008 125,876 3,281 - 10,129 -7.4%



Biodiversity Management

(304-1) Operational sites in, or adjacent to, protected areas and areas of high biodiversity value

2019

Owned, leased or managed operation centers located in or alongside protected

areas, or areas of substan-tial value for biodiversity

located outside of protect-ed areas

Geographic location

Value of biodiversity in terms of the characteristics of the pro-

tected area or area of great val-ue for biodiversity outside the

protected area (land, marine or fresh water ecosystems)

Value of biodiversity, based on its inclusion in protected lists (such as the categories for pro-

tected area management of UICN, the Ramsar

Convention and domestic laws)

LAM 2501 SOUTHERN BOLIVAR

Dry tropical forest with different types of vegetation cover, such

as grass with trees, open forest, grasslands and artificial bodies

of water called “jagüeyes”.

Integrated Regional Management Districts

in Santander of the San Silvestre wetlands

LAM 2501 SOUTHERN BOLIVAR


as grass with trees, open forest, grasslands and artificial bodies


Integrated Regional Management Districts in Santander of Serrania los

Yariguies

LAM 0069 EAST CENTRAL

Low Mountain Rainforest and Low Mountain Dry Forest.

Most of the native forest has been transformed and the area

is predominantly covered by grasses and small dispersed

areas of stubble and bushes on the grasslands.

Regional Integrated Man-agement Districts in Boya-

ca - Fuquene, Cucunuba and Palacio Lake Complex







ca -Paramo de Guargua and Laguna Verde

LAM 0034 BALLENA - BARRAN-CABERMEJA

Dry tropical forest with various types of vegetation cover includ-

ing grass with trees, open for-est, pastures and natural bodies of water such as the wetlands complex of the mid-Magdalena

valley.

National Protected Forest Reserves -Cuenca Alta

del Caño Alonso


Annexes ¯




Geographic location





tected area management of IUCN, the Ramsar


LAM 0299 MARIQUITA - CALI

Forms part of the major Biome: Orobiome of the Tropical Humid

Zonobiome, which includes Andean rainforest ecosystems, fragmented forest with second-ary vegetation, paramo, forestry agro-ecosystem, cattle ranching

agro-ecosystem, mosaic of crops, grasses and natural

areas.

Regional Integrated Management Districts in Quindio - Of the Upper Basin of Rio Quindio de

Salento






Regional Natural Parks in Santander - Serrania de

las Quinchas

LAV 0003-12 LA SABANA

Forms part of the major Biome: Azonal Orobiome of the Tropical

Humid Zonobiome, includes ecosystems of permanent crops

agro-ecosystems, agro-eco-system of mosaic of crops and

grasses, Andean wetlands.

Regional Integrated Management Districts - Wetlands of Guali Tres

Esquinas and Lagunas del Funzhe

LAM 0054 BOYACÁ - SANTANDER






ca -Lago de Sochagota






Regional Integrated Management Districts - Cuchilla de San Antonio

LAM 0278 CUSIANA - EL POR-VENIR - LA BELLEZA





Regional Integrated Man-agement Districts in Boya-ca - Paramo Mamapacha

and Bijagual




Geographic location





tected area management of IUCN, the Ramsar


LAM 0034 BALLENA - BARRAN-CABERMEJA


as grass with trees, open forest, grasslands and surface bodies


Regional Integrated Management Districts in La Guajira - Lower basin

of Rio Rancheria

LAM 0951 CUSIANA - APIAY - USME


Zonobiome, includes ecosys-tems of the agro-ecosystem of mosaic of crops, grasses and

natural areas, sub-Andean rain-forest. It also includes the major

Biode of the Tropical Humid Zonobiome, with the following ecosystems: Agro-ecosystem

of mosaic of crops, grasses and natural areas, basal rainforest, fragmented forest with grasses

and crops.

National Protected Forest Reserves -Quebrada

Honda and Caños Parrado y Buque


Forms part of the major Biome: Fragmented forest with grasses and crops, including agro-eco-systems of mosaic of grasses

and natural areas, Andean rain-forest, paramo and secondary

vegetation.

National Protected Forest Reserves - Rio Blanco and

Quebrada Olivares



Zonobiome, which includes Andean rainforest and paramo ecosystem and cattle ranching

agro-ecosystem.

Regional Protected Forest Reserves - Torre Cuatro

Note: All reported operation centers have rights of way contracts near protected areas and have gas pipeline transportation operations. Of the 15 reported centers, 14 are located in the buffer area of the protected areas, and only LAM 0069 in the East Central area is within a protected area.


Annexes ¯

Water con-sumption (ml)

2017 2018 2019

4.01 5.16 4.87

(303-5)

Water consumption

Waste management (tons) 2017 2018 2019

Total hazardous waste by disposal method 467.59 590.57 290.04

Bioremediation 139.4

Reuse 26.03

Recycling 0.57 13.21

Physicochemical treatment 52.8

Incineration 0.07

Hazardous waste landfill 8.96 11.57 11.43

Other 47.1

Unclassified 458.06 579

Total non-hazardous waste by dispos-al method 17.427 43.13 10.825

Recycling 4.757 30.46

Sanitary landfill 12.67 12.67 10.825

Total waste disposal (tons) 21.63 24.24 22.325

Total waste generated by the organ-ization 485.017 633.7 300.865

Water extraction by source (ml)

2017 2018 2019

All areas All areas All areas

Areas under hydric stress

Total water extraction 4.01 5.156 4.913 0.31

Surface water - - - -

Fresh surface water

Other surface water

Groundwater 2.49 2.08 1.338 0.31

Fresh groundwater 2.49 2.08 1.338 0.31

Other groundwater

Water from third parties

Fresh water from third parties 1,525 3.079 3.775

Other water

Wastes

(306-2)

Waste by type and disposal method

Water

(303-3)

Water withdrawal

The disposal method is selected in compliance with regulations depending of the type of waste produced and the availability of service providers in the operation area

Notes:• The area under hydric stress is the

Hatonuevo ECG• The All Areas column includes

areas under hydric stress

Density (kg/l)

LHV (MJ/kg)

Diesel 0.852 42.419

Gasoline 0.741 45.330

Natural Gas 0.741 35.65

Energy consumption within the organization 2017 2018 2019

Consumption of energy from non-renewable sources (GJ) 997,237.22 1,587,595.16 2,284,557.00

Diesel fuel consumption 8,412

Gasoline consumption 2,052

VNG consumption 3,102

Natural gas consumption 997,237 1,587,595 2,270,983

Purchased energy 13,371 10,081.918 11,223

Purchased energy consump-tion 13,371 10,082 11,223

Total internal energy con-sumption (GJ) 1,010,608.22 1,597,677.08 2,295,780

Climate Strategy(302-1)

Energy consumption within the organization

Conversion factors used (Source: FECOC UPME)

(102-48) Starting in 2019, gas consumption is broken down by nat-ural gas and vehicle natural gas. In 2017 and 2018 both items were included under a single total


Annexes ¯

(305-1) Direct GHG emissions (Scope 1)

(305-2) Indirect GHG emissions from generating energy (Scope 2)

(305-3) Other indirect GHG emissions (Scope 3) Description of the methodology used to calculate the 2019 carbon footprint

Description 2019 Footprint

Gases included in the calculation CO2, CH4, N2O

Baseline year for calculations 2018

Source of emissions factors

Fuels:FECOC

Electric power:UPME-XM 2019

Refrigerant gases:IPCC-AR5 guidelines

R410a: http://www.linde-gas.com/en/products_and_supply/refriger-

ants/hfc_refrigerants/r410a/index.html

Emission factors used

Gasoline EF:

Conversion factors: the same factors reported under indicator 302-1 were used

XM: 0.164 g CO2/kW h

GWP:CO2: 1

CH4: 28N2O: 265

HCFC 123: 79S: 2,088

Defined limit (operational or financial) Operational

Standards or methodologies used GHG Protocol

Calculation Tools CO2CERO calculation tool (Excel and on-line tool)

Omissions Refrigerant gases

Indicator kgCO2/TJ kgCH4/TJ kgN2O/TJ

Diesel B2 74,193 10 0.6

Gasoline engine 69,324 10 0.6

Natural Gas 55,539 3 0.1

Source FECOC IPCC IPCC

Social Dimension Transformation of territories(203-2) Significant indirect economic impacts

Place where the impacts take place: TGI areas of influence

TGI 2019Indirect economic impacts (positive and negative) produced by the operation in the area

Impact description

Positive indirect economic impacts:1. Infrastructure for competitiveness: During 2019, TGI carried out projects focusing on healthy lifestyles and the well-being of community members, as a strategy to promote social cohesion and equality in the territories, in articulation with the objective of providing universal access to safe, accessible and inclusive green areas and public spaces. The development of public spaces is essential for creating cheerful and inclusive cities and/or towns.

2. Sustainable Energy: It is a development premise that TGI shares and promotes in the most vulnerable neighboring ru-ral communities. The social gaps and the weakened culture of the Wayuu indigenous communities in northern La Guajira have led the company to decidedly bring solar panels for electricity to improve productivity and preserve the traditions and hopes of these families.

3. Access to water, basic sanitation and sewage: In line with this challenge and for the sake of equity, TGI contributes to improving and facilitating access to water for rural communities in its areas of interest.

4. Local entrepreneurship: In line with its focus on projects aimed at increasing the communities’ productivity and com-petitiveness, TGI promotes entrepreneurship and the growth of traditional raising of minor livestock species in the com-munities, to create income opportunities and consolidate the traditions and the natural vocation of rural communities.

5. Ethnic and rural female entrepreneurship: Promoting the participation of women in benefiting from entrepreneurship opportunities that will spiritually and economically dignify them is a moral and social responsibility that TGI champions and promotes.

6. Innovation - Access to Biogas: Ensuring universal access to affordable, reliable and modern energy services is a global challenge that TGI has incorporated in its development initiatives, in view of the gap in access to basic services in rural Colombia and in many neighboring areas of the company.

7. Education: Improving the quality and relevance of education is one of the objectives of the social investment made by TGI. In this line, the company has supported “construction, upgrading and equipping school facilities to offer safe, adequate, non-violent, inclusive and effective learning environments for all.”

8. Support for micro and small enterprises: TGI joins the global spirit of generating a culture of entrepreneurship and job creation as a means to drive productivity and innovation in the territories, and thereby foster their sustainable economic growth. The province of Vélez, an example to be replicated.

9. Social leadership: In the case of the social leadership program carried out in 9 of TGI’s direct area of influence (AID, for the original in Spanish) municipalities, transparent communications with all stakeholders is essential. These exchanges promote continuous improvement and strengthen the company’s role in the community’s engagement and development.

10. Strengthening of job skills: The diversification of employment is a pressing need to enable the economic growth of peo-ple and regions. To this end, TGI promotes the development of profitable and sustainable business units through technical training processes to enhance their productivity and competitiveness.

11. Corporate volunteer work: The employees join as volunteers who freely and selflessly offer their time, work and talent in favor of the common good of stakeholder groups within the territories of the company’s AID.

12. Risk Management: The methodology adopted for the education and training program is based on the methodology of Awareness and Preparedness for Emergencies at the Local Level (APELL). It is primarily a means to contribute to increas-ing the awareness of local communities and to promote the culture of prevention, as well as the development of training programs aimed at all stakeholders.


Annexes ¯

Informe de sostenibilidad 2019 Con Conciencia social

TGI I

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2019

sustainability report with social awareness · 194,835 hp our network covers 17 colombian...

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